Worried depositors throng Bengaluru bank
BENGALURU:PANIC stricken depositors milled around the Sri Guru Raghavendra Cooperative Bank here on Tuesday to withdraw their money, days after the Reserve Bank of India capped the withdrawal limit to ~35,000.
The depositors, mostly senior citizens, were concerned about their money deposited in the bank and worried as to how long it might take for the situation to get resolved.
Expressing disappointment about the bank’s response to their concerns, many said they had put their money in the bank as it provided an additional one per cent interest. Some depositors even compared the situation with the PMC bank crisis.
Bank officials maintained that depositors’ money was ‘hundred per cent’ safe and they are expected to hold a meeting with them on January 19.
One such meeting that was supposed to be held on Monday could not take place.
Bank Chairman K Ramakrishna said the bank has stability and there was no reason for depositors to worry or panic.
Stating that RBI restrictions cited the rise in Non-performing Assets, he said, “NPA during last March was 0.50%, but as they have taken the numbers of the last eight years, there is some confusion. The restrictions are not permanent. It is temporary in the interest of the depositors and the bank... Banks license has not been cancelled.”
Requesting depositors not to fear, he said the management was committed to set things right and the bank has a good record of over 20 years on their side.
He said the bank has not given any benami loans and has ~2,200 crore security. “We are in talks with RBI to bring in normalcy...please don’t panic on hearing what others are saying.”
Meanwhile, Bangalore South MP Tejasvi Surya said Union finance minister Nirmala Sitharaman has been apprised of the matter and was personally monitoring the issue.
“I want to assure all depositors of Sri Guru Raghavendra Co-operative Bank to not panic. Hon’ble Finance Minister Smt. @nsitharaman is appraised of matter & is personally monitoring the issue...,” he tweeted.
The RBI had directed that from the close of business on January 10 “a sum not exceeding ~35,000 of the total balance in every savings bank or current account or any other deposit account by whatever name called, may be allowed to be withdrawn by a depositor.” According to sources, RBI’S restriction was because the bank had seen a default of ~350 crore on loans over last three months.