Rbi Sends Ed To Take Charge At Charminar Bank

The Reserve Bank of India (RBI) is sending one of its executive directors here to take charge of the affairs of the Charminar Bank, a scheduled co-operative urban bank, whose high profile chairman Syed Alamdar Hussain Sajjad Aga committed suicide this morning.

The RBI decision follows a request from chief minister, N Chandrababu Naidu who today spoke to the Union finance minister Yeshwant Sinha and RBI governor, Bimal Jalan, expressing concern over the development and conveying anxiety about the huge deposits of over Rs 300 crore the bank had mobilised in recent years offering attractive rates of interest.

Charminar Bank had a deposit base of about Rs 500 crore before the depositors withdrew their amounts because of the Krushi Urban Cooperative Bank episode, which turned away depositors from the urban cooperative banks.

 

There are allegations that Charminar Bank has huge non recoverable loans.

Meanwhile, the Director General of Police, P Ramulu said that the suicide case has been handed to CID for a thorough probe. The state's co-operative department has also been directed by the chief minister to depute its senior officers to the 21 branches of the Bank spread over the City to maintain a watch n the transactions of the Bank.

There was no draw on the bank whose main office opposite the legislature building as well as branches remained closed as the new of the suicide of the Chairman spread like wildfire. But there are apprehensions that depositors will converge on the Bank's branches once they open tomorrow.

The police is also keeping a watch over the headquarters as well as the vulnerable branches of the Bank. The suicide by the Chairman also figured in the legislative assembly today when a senior BJP member, N Indrasena Reddy drew attention of the government.

The finance minister informed the House that the chief minister was in touch with the Reserve Bank of India and necessary preventive steps to safeguard the interests of the depositors were being initiated.