Promising higher returns, bank holds off depositors | india | Hindustan Times
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Promising higher returns, bank holds off depositors

india Updated: Sep 16, 2006 15:20 IST

WITH TALKS of Maharashtra Brahman Sahkari Bank Limited being taken over by Nagpur Nagarik Sahkari Bank Limited (NNSBL) doing the rounds, disbursement of insurance claims to the former’s depositors has slowed down.

After receiving Rs 28 crore from Deposit Insurance and Credit Guarantee Corporation (DICGC), Mumbai, this June the management has disbursed Rs 11 crore so far. DICGC is an RBI subsidiary. The depositors have been discouraged from withdrawing their dues on the promise that NNSBL will pay them interest at the rate of seven per cent per annum on their total deposits till date. If they withdraw the sum now, they will get interest till October 6, 2004, the day the bank went into liquidation.

The promise of a speedy merger and full recompense has been given by a section of politicians and former bank directors led by Sumitra Mahajan. In statements given to Hindustan Times earlier, former bank director Milind Mahajan had said that his mother, MP and BJP national vice-president Sumitra Mahajan, was making attempts for amalgamation to ensure safety of the deposits where depositors would get better rate of interest and would be able to withdraw the entire sum.

At present, they are being given up to Rs 1 lakh. In case of liquidation, a depositor is returned a sum of up to Rs 1 lakh even if his deposit is more than the said amount. The depositors are returned dues with help from DICGC funds and the deposits available with cooperative bank at time of dissolution.

“It’s been a planned obstruction. First they misutilised the Bank funds, then they created obstacles in release of DICGC sum from Mumbai. Then they floated a theory that merger was taking place and the disbursement would be made after merger. Now that DICGC money has come, they are not letting depositors withdraw their dues,” a senior management official remarked.

The idea behind preventing withdrawals is to have a considerable sum with the cooperative for projection before NNSBL. “We should have something in our kitty to show them, there should be no zeros,” a bank employee said. According to an estimate, the cooperative has Rs 21 crore in its fund, which is a sum total of the deposits made above Rs 1 lakh.