Bank financially sound: Century
Suspension from clearing house a hasty decision, says Century Co-operative Bank manager
| The Century Bank was suspended from clearing house operations on Tuesday as it failed to meet the clearing house requirements. |
| Even before the bank, situated at Ambaji Market, Ring Road, opened at 10:30 am today, a large number of depositors and account holders had gathered to withdraw their monies. |
| Century Bank manager Ramesh Rajput, said: "We have arranged for cash of Rs 60 lakh from State Bank of India. We are also making other arrangements to ensure that the money can be paid to our customers. We have not fixed any withdrawal limit - customers, having a savings or current account in our bank, can withdraw their entire deposits. However, in accordance with Reserve Bank of India guidelines, we are not making any premature payment." |
| Rajput claimed that Century Bank was financially sound and stable. "As on Tuesday, the bank's total deposits are Rs 14 crore, while loan advances are Rs 15 crore. The reserve surplus capital is Rs 3 crore, while we have zero per cent NPAs. In the financial year ending March 31, 2004, the bank had made a net profit of Rs 39.73 lakh. So we can assure the depositors that the bank is sound and there is no reason for them to worry. However, if they still want to withdraw their monies, we are paying them in full," he said. |
| The bank's manager said Surat Bankers Clearing House had erred in suspending Century Bank from clearing house operations. |
| "The bank was suspended from clearing house operations because there was a delay of 30 minutes in depositing Rs 20 lakh yesterday. We fell short of the amount because there was extra rush for withdrawals - mainly because the bank was functioning after a gap of three days as Saturday, Sunday and Monday were public holidays," Rajput said. |
| "The Clearing House should have acted a bit leniently - One does not get death sentence in a theft case. Our suspension from the clearing house has resulted in unnecessary problems for us as well as our customers. We are sure we will be allowed to resume clearing house operations in a day or two," he added. |
| The Century Co-operative Bank was founded in 1999. It has just one branch. The bank has around 7000 to 8000 depositors and account holders, while the number of share holders is 4600. |