RBI puts curbs on Bengaluru bank, customers panic

Bengaluru, Jan 14 (IANS): Assuring depositors that their money was "100 per cent safe" with the bank, Sri Guru Raghavendra Sahakara Bank Chairman K. Ramakrishna, here on Monday, said 62 loans had locked up Rs 300 crore of deposit.

"Your money is 100 per cent safe with Sri Guru Raghavendra Sahakara Bank. It's my responsibility," Ramakrishna said at Sri Guru Narasimha Kalyanamandira auditorium, to assure depositors.

Because of these 62 dud loans, the Reserve Bank of India (RBI) had restricted the lender from executing business, he said amid shouting by depositors.

To assuage customers, the call to an assistant commissioner of police by Bengaluru South MP Tejaswi Surya -- not present -- was relayed on loudspeaker live and the MP claimed that he had spoken to Finance Minister Nirmala Sitharaman to help the customers.

Ramakrishna said he would meet customers again on January 19 with all the details and numbers.

Dramatic scenes and pandemonium ruled the auditorium before his arrival. Thousands of bank customers threatened to go en masse to the police station and file a case against Ramakrishna.

As he addressed the gathering in Kannada, hundreds of depositors shouted back at him seeking clarifications.

"The bank is saying I can't withdraw more than Rs 35,000. In case of our fixed deposit maturing, we will have to renew it as we can't encash it, " said Nagaraj M, 49, who has been dealing with the bank for the past six years.

At the auditorium, thousands of depositors earlier demanded the bank chairman's presence to clarify the matter.

The lender had invited depositors to the auditorium at 6 p.m. to update them on the bank's status, following a RBI directive restricting the bank from doing business with immediate effect.

"We want the bank's directors here," shouted a depositor from the stage. A handful of policemen were trying to control the crowd and bring order to the assembly.

Many elderly and retired persons had arrived to know the fate of their savings. Several women were also present at the meeting.

"It was a good bank with only 0.5 per cent NPAs. Now we can't trust any bank. See what happened with the PMC Bank," said another customer.

Shankar Sharma, 38, an employee of a private company, said majority of depositors were senior citizens and retirees. "I don't have an account with the bank, but my mother, uncle, aunt have deposited money in it. I came for them, " said Sharma.

He said many of the bank's 35,000 clientele deposited more than Rs 5 lakh, which had total deposits of Rs 1,600 crore. The bank started operations in 1999.

Ramakrishna was escorted away to safety by the police after his speech even as the depositors were screaming and agitating for justice.


Comment on this article

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Tue, Jan 14 2020

    Unlike PMC bank, there is no scam here, only due to economic conditions, the people who took loan are unable to pay back. This bank has an honest management it seems. While PMC has 11,800 crore deposits, this bank has 1,600 crore. PMC has 137 branches in 5 states, this has 10 branches in Karnataka. PMC has 9 lakh depositors, in this bank 9 thousand. PMC has more than 1800 employees.

    PMC bank scam, 12 management and other people are in jail. I think, no one will be going to jail in this bank. May be, this bank will spring up soon.

    DisAgree Agree [5] Reply Report Abuse

  • Clifford Fernandes, Toronto

    Tue, Jan 14 2020

    MP Tejaswi Surya --claimed that he had spoken to Finance Minister Nirmala Sitharaman to help the customers.

    When Indians were in the grip of onion crisis, FM said, she was not eating onions. I think in the present situation to help, probably she may not have any deposits in PMC and this bank either !!!

    DisAgree Agree [11] Reply Report Abuse

  • John, mangalore

    Tue, Jan 14 2020

    Tejesvi surya will soon release a tik tok video to assuage the customers

    DisAgree Agree [5] Reply Report Abuse

  • Raj, Mglr

    Tue, Jan 14 2020

    Ye Lo Bhakthoo " Achi Din"

    DisAgree Agree [21] Reply Report Abuse

  • Krishna Dasa, Udupi,.

    Tue, Jan 14 2020

    Record number of Indians are cashing the assets and converting in to foreign curency and moving overseas. It will shrink the economy and only poor, under educated persons will remain in India.

    DisAgree [2] Agree [19] Reply Report Abuse

  • Pavan, Mlr

    Tue, Jan 14 2020

    Mera desh badal ra ha hai agae bad ra ha hai🤔

    DisAgree [2] Agree [29] Reply Report Abuse

  • Prabhu, Karkala

    Tue, Jan 14 2020

    I agree with you. All the gotalas done in last 70 years are coming out.

    DisAgree [34] Agree [5] Reply Report Abuse

  • Mohammed, Mangalore

    Tue, Jan 14 2020

    Bro Prabhu, we need to see from different angle that in the last 6-year all the gotala crossed record of 70 years. Just example starting from Currency demonetization. But what to do now days Bukth’s are sleeping and dreaming only.

    DisAgree [2] Agree [31] Reply Report Abuse

  • Narendra Kumar, Mangalore

    Tue, Jan 14 2020

    Have some shame and say correctly that from last 6 plus years Banks are collapsing!

    DisAgree [2] Agree [22] Reply Report Abuse

  • vasu, Mangalore

    Tue, Jan 14 2020

    NPA problems were kept under the carpet by congress.No proper provisioning norms. Modi is cleaning the mess.Not fair to pounce on the person trying to set right the system..

    DisAgree [22] Agree [3] Report Abuse

  • Anamika, Bajpe

    Tue, Jan 14 2020

    Our MP Tejaswi called FM, then nothing will happen to the bank.
    No need to worry everything will run smoothly as our MP Tejaswi behind our support.
    If we loose all our earnings we still vote for BJPeee.

    DisAgree [4] Agree [18] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Tue, Jan 14 2020

    Before 2014, Congress was eating and allowing others to eat.
    After 2014, BJP is eating and not allowing others to eat.
    That is the reason, economy has gone down, citizens lost jobs, companies closed and people who have taken loans are unable to pay back.

    DisAgree [1] Agree [35] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Jan 14 2020

    India's Economy is the Lowest in 50 Years - Forbes ...

    DisAgree [1] Agree [42] Reply Report Abuse

  • JNB, Bejai,Mangalore

    Tue, Jan 14 2020

    Dr.Sambit Patra said India's economy will be 5 trillion dollars.

    DisAgree [1] Agree [20] Reply Report Abuse

  • Sunil K, Mangalore

    Tue, Jan 14 2020

    As I said many times before, BJP doesn't know how to manage the economy of the country.

    Before the situation gets even worse, its advisable for Modi to resign as PM and BJP to sit in the opposition; let Manmohan Singh take over the reigns and stabilize the nation.

    DisAgree [2] Agree [50] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Tue, Jan 14 2020

    This is only tip of the ice berg..., just listen to Shri Subramanya Swami's recent interview about economy...,

    Jokara.. Tejaswi calling and speaking to FM...., for what...???? this is called interference in the independent functioning of premier institution like RBI....,

    After all after DEMONitisation.... whole Hindustan's ecocnomy gone to dust...., cheddiless (now trouser) jokers keep jumping...!!!!

    This is only a sample..., Just check with Chartered Accountants on the sidelines & on anonymity...., you will realise what is in store in the days ahead.., all micro, mid & large enterprises balance sheets were stressed with no debt servicing capacity/earnings....,

    Just fudging of accounts & reporting is going on..., and artificially govt is managing the headlines with FEKU benchmarks about economy by showing Stock Market performance...,

    only LORD BRAHMA can save Hindustan from collapse..., for sure... ARYAN's (Britishers) are laughing at Hindustani's.., their agenda through their agents is now getting fulfilled...,

    jai hind..,

    DisAgree [2] Agree [31] Reply Report Abuse

  • Prakash, Mangalore

    Tue, Jan 14 2020

    Economy is worst in 42 years, Stock Market performance is playing with the numbers. Be cautious before investing in Stock Market.

    DisAgree [1] Agree [24] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Jan 14 2020

    Why only after 2014 ...

    DisAgree [7] Agree [43] Reply Report Abuse

  • khursheed, abu dhabi

    Tue, Jan 14 2020

    You forgot jumla "ACHHE DIN".....

    DisAgree [4] Agree [35] Reply Report Abuse


Title : RBI puts curbs on Bengaluru bank, customers panic


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