Chordia Dismisses Adverse Reports On Bank Of Rajasthan

N M Chordia, managing director of the Bank of Rajasthan, has dismissed media reports raising doubts over the soundness of the bank.

In a statement issued by here today, Chordia said bank deposits had recorded a 23 per cent growth during 1996-97, taking the deposits raised to a record level of Rs 3,095 crore from Rs 2,507 crore in the previous year.

This was against the backdrop of a 16 per cent average growth registered during the period.

Advances too had increased to a record high of over Rs 1,048 crore he added. The bank is in the process of reorganising its structure and proposes to hire consultants for redefining its business strategy.

 

It also intends to expand its network in Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, Punjab, West Bengal, Gujarat and Maharashtra.

Discounting fears on the stability of the bank, Chordia said its fundamentals were sound. Net-owned funds had grown to around Rs 185 crore and the quality of assets compared favourably with other nationalised or other scheduled banks.

He added the allegations made by the secretary of the National Organisation of Bank Workers were false, mischievous and irresponsible.

He claimed the person in question was not even an employee of the bank and the workers organisation he represented was not recognised. Chordia said stray instances of the so-called irregularities, quoted in some news reports, had been blown out of proportion. The banks affairs were managed on sound professional lines and its operations was subject to Reserve Bank of India inspection. The apex bank was represented on the banks board by two nominee directors, he added.

Refuting allegations of some loans becoming non-performing assets, Chordia said the banks interests in all the cases were taken care of.

In the case of MVR Raja, the bank had secured a decree from a Singapore court to recover its dues. In any event the exposure of the bank, was insignificant compared with other nationalised and scheduled banks, he said.