Another Andhra Co-Op Bank, Sravya, Hobbles

Even as Krushi Urban Co-operative Bank depositors are left high and dry what with the bank chairman and managing director still eluding the police, another urban co-operative bank is showing signs of crisis.

Sravya Co-operative Urban Bank based in the city has been giving jitters to its depositors of late.

With their cheques not being honoured due to liquidity problems at the bank, several depositors, further perturbed by reports about the bank in the local media, stormed the bank office today to find out the goings-on.

What all they could get was a mere assuaging of their feelings by the bank management.

With some depositors knocking the doors of the officials concerned, the district co-operative officer has started enquiries into the developments at the bank. Moved by the depositors, the police swung into action and are closely watching the goings-on.

Gnanaiah, the chairman of Sravya Co-operative Urban Bank, when contacted, said there was a mismatch of funds due to withdrawal pressure from the depositors during the last four months following the Krushi bank episode.

The situation is aggravated by the bank's helplessness to raise fresh deposits and recover loans.

He said that a request had been made to the state government and the Reserve Bank of India officials to provide an adjustment loan of Rs 1 crore against surety to tide over the situation. It is learnt that some directors resigned recently, alleging that the chairman of the bank had advanced loans without their knowledge.