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Bengaluru bank blames 62 dud loans for crisis
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SME Times News Bureau | 15 Jan, 2020
Assuring depositors that their money was "100 per cent safe" with the
bank, Sri Guru Raghavendra Sahakara Bank Chairman K. Ramakrishna, here
on Monday, said 62 loans had locked up Rs 300 crore of deposit.
"Your
money is 100 per cent safe with Sri Guru Raghavendra Sahakara Bank.
It's my responsibility," Ramakrishna said at Sri Guru Narasimha
Kalyanamandira auditorium, to assure depositors.
Because of these
62 dud loans, the Reserve Bank of India (RBI) had restricted the lender
from executing business, he said amid shouting by depositors.
To
assuage customers, the call to an assistant commissioner of police by
Bengaluru South MP Tejaswi Surya -- not present -- was relayed on
loudspeaker live and the MP claimed that he had spoken to Finance
Minister Nirmala Sitharaman to help the customers.
Ramakrishna said he would meet customers again on January 19 with all the details and numbers.
Dramatic
scenes and pandemonium ruled the auditorium before his arrival.
Thousands of bank customers threatened to go en masse to the police
station and file a case against Ramakrishna.
As he addressed the gathering in Kannada, hundreds of depositors shouted back at him seeking clarifications.
"The
bank is saying I can't withdraw more than Rs 35,000. In case of our
fixed deposit maturing, we will have to renew it as we can't encash it, "
said Nagaraj M, 49, who has been dealing with the bank for the past six
years.
At the auditorium, thousands of depositors earlier demanded the bank chairman's presence to clarify the matter.
The
lender had invited depositors to the auditorium at 6 p.m. to update
them on the bank's status, following a RBI directive restricting the
bank from doing business with immediate effect.
"We want the
bank's directors here," shouted a depositor from the stage. A handful of
policemen were trying to control the crowd and bring order to the
assembly.
Many elderly and retired persons had arrived to know the fate of their savings. Several women were also present at the meeting.
"It
was a good bank with only 0.5 per cent NPAs. Now we can't trust any
bank. See what happened with the PMC Bank," said another customer.
Shankar
Sharma, 38, an employee of a private company, said majority of
depositors were senior citizens and retirees. "I don't have an account
with the bank, but my mother, uncle, aunt have deposited money in it. I
came for them, " said Sharma.
He said many of the bank's 35,000
clientele deposited more than Rs 5 lakh, which had total deposits of Rs
1,600 crore. The bank started operations in 1999.
Ramakrishna was
escorted away to safety by the police after his speech even as the
depositors were screaming and agitating for justice.
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