Depositors relieved as Krushi Bank opens

By Our Staff Reporter

HYDERABAD, AUGUST 13. After being subjected to two-day long tension and agony, the depositors of the Krushi Cooperative Urban Bank in the city received some solace as the bank, which failed to return the deposits from Saturday and remained closed during day time on Monday, was opened in the evening.

In a dramatic development, the bank's Assistant General Manager, Mr. Moorthy, accompanied by the Mahankali police station Inspector Mr. Someswara Rao, met the tension gripped and agitated customers and convinced them that their money would be returned "as per the availability of the funds".

Mr. Moorthy obliged the demand of the depositors that the matured deposits be retuned without any delay. He accepted the same, however, depending on the amount of the money at the disposal of the bank. He pleaded with the depositors to allow the bank continue its transactions.

According to the Mahankali police station Inspector, the depositors expressed their wish "not to go in for cases". "They wanted their money back, even if it meant after some time", the Inspector said. Though the police could not trace any of the bank's directors, its vice-chairman Mr. Venugopal, brother of the bank's chairman Mr. Venkateswara Rao, spoke to the Inspector on the phone. "Venugopal assured on the phone to shortly present all the directors before the public and police", the Inspector said.

RBI assurance

Earlier, as confused depositors made rounds of the Krushi Cooperative Urban Bank, Mahankali police station and the Reserve Bank of India (RBI), the RBI officials said they were `looking into the matter,' and that they had asked the bank for `certain clarifications'.

The officials clarified that the licence to the bank had not been revoked. They explained to depositors who went there (RBI office) `not to worry', and that deposits up to Rs.1 lakh per individual were insured with the Deposit Insurance Credit Guarantee Corporation of India.

An RBI official told The Hindu, that they had asked the depositors to allow the bank to open (it has been closed for two days), so that the bank manager could supply the latest deposit position and other details to the RBI.

The issue once again threw up the concerns over safety of money in Urban Co-operative Banks. As Mr. Nageswar Rao, a Maithri volunteer with Bowenpally police station, said, "Because of one or two such banks, all cooperative urban banks get a bad name."

There are also the likes of Mrs. Sachdev, who did not even know Krushi is a cooperative bank, but made a small deposit along with friends. "Problem har bank me hota hai (every bank has problems but manages to cover up). Even Global Trust Bank had. But they manage to cover up," she said philosophically. She was one of those taken for a ride by a jewellery-cum-finance company in Lal Bangalow (Begumpet) a few years ago. Those who deposited Rs.10,000 there managed to get Rs.3,000 back after months of running around. Perhaps, those who are lured by high interest rates should take a lesson from her. "I deposit in public sector banks as also cooperative banks. But I never deposit more than Rs.50,000 in one bank, thereby spreading the risk," she says.

Mr. B. Venkatratnam, a retired government officer, said he was attracted by high interest rates. He renewed his deposit last month, for a further period of one month, with the intention of shifting it to some other bank. He now wants RBI to ensure payment of at least matured deposits. Otherwise attach the property of the directors to pay off deposits, he says angrily.

An elderly gentleman squarely blamed the press. "You wrote that he was a big man (chairman of Krushi Bank, Mr. K. Ventakeswara Rao), and top income tax payer, and we trusted him on that basis''. The explanation that it was the IT department that made the announcement wouldn't satisfy him. He was upset at the `excessive publicity' given to such instances, even though it was not yet clear whether the bank would survive or not.

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