Published On : Wed, Jul 22nd, 2015

Navodaya Co-op Bank in crisis: Rs 25 crore withdrawn in 5 days

Navodaya Cooperative bank here in the city has suffered a big jolt as Rs 25 crore were withdrawn within 5 days by depositors under a well planned strategy of of their being affected by a propaganda among its customers regarding doubtful security of their deposits with the bank.

It is quite common conspiracy among private banks and cooperative societies under which various tactics are used to compete with each other and the customers are misled in order to attract them to one particular bank for increasing deposits of their valuables and cash.

According to sources close to the bank, it had deposits worth more than Rs 125 crore, and the bank management had distributed loans worth Rs 95 crore recently.

During previous week, among several fixed depositors of the bank one depositor prematurely withdrew about Rs 25 crore from fixed deposit with the bank. Failed in convincing the depositor against the said withdrawal, the bank with effect from July 21, 2015 disallowed premature withdrawal of fixed deposits. The management told the customers that it did not have immediate cash as per their demands.

However, the bank told them that they could withdraw cash after 10-15 days from the date of informing the bank for withdrawal when necessary, and by that the bank will be able to arrange for cash.

The said bank is situated at Dhantoli. The directors of the bank however assured the customers on Wednesday not to worry at all as their deposits were safe and insured.

Rajeev Ranjan Kushwaha (