Andhra Pradesh - Visakhapatnam

Rumours trigger panic reaction

VISAKHAPATNAM: Rumours that quickly spread around the city that a major private bank is in deep trouble triggered panic reaction from its customers. Long queues were formed in front of this bank’s ATMs in different parts of the city as people started withdrawing their money.

The slump stock market had suffered on Monday and this bank also losing substantially could be one reason for the panic reaction. The apprehension about the affect of the crisis being faced by the US on the Indian private sector banks added to the problem. Another reason being given was that the rumour gained strength as ATMs witnessed long queues because bank transactions would not take place for the next three days (Tuesday being the half-yearly closing, followed by holidays for Ramzan and Gandhi Jayanti on October 1 and 2 respectively).

Some persons waiting in the queue in front of the bank’s ATM in Seethammadhara said they rushed to withdraw money on hearing rumours about the bank’s fate. “We don’t know the fact. But to be on the safe side I am withdrawing the money,” said one of them. Similar scenes were witnessed in Hyderabad also.

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