The Hindu : Andhra Pradesh News : Prudential depositors plan to move court

Online edition of India's National Newspaper
Saturday, Sep 11, 2004

Andhra Pradesh

Andhra Pradesh

Prudential depositors plan to move court

By V.N. Harinath

HYDERABAD, SEPT. 10. The Depositors' Association of Prudential Cooperative Bank Limited is planning to file a public interest litigation (PIL) to focus attention on the injustice done to 1.4 lakh depositors.

Office-bearers of the association, headed by the president, K. Srinivasulu, intend to file the PIL, which may come for hearing on Tuesday. "We want to make sure that there is no let-up in the depositors' pressure on both management and the Government. This will ensure that their interests are protected," Mr. Srinivasulu told The Hindu.

"The association is unhappy with the Government and the management for letting down the depositors after assuring them in the last 18 months that their interests are in safe hands. What is that they have done now?" he asks in apparent anger over the management's decision to pay Rs.20,000 to each depositor, as permitted by the Reserve Bank of India.

Let down `badly'

"How can the management hope we will be happy to receive this pittance despite the recovery of Rs.180 crores? Many of the depositors are shocked by the bank's offer to pay Rs.20,000 only," he says.

He says many of the depositors are senior citizens who have invested their life savings in the bank hoping to raise funds for their children's higher studies or performing their marriages or meeting housing or health care expenses.

While the Government rescued Charminar Cooperative Bank, why not a similar arrangement worked out in regard to Prudential. "Is it because we are not able to bring as much pressure, as was done by Charminar, or, for that matter, Global Trust Bank, which has been taken over by Oriental Bank of Commerce?" he asks.

`Hollow' promises

"We were hopeful when none other than the Chief Minister, Y.S. Rajasekhara Reddy, has assured the association that the government will ensure revival of the bank or merge it with a nationalised bank. Even the Chief Secretary, Mohan Kanda, has held out similar hopes. But, the assurances have turned out to be hollow," he regrets.

The Government has not forced the management to recover dues amounting to several hundred crores from some big borrowers. Four chairmen and three Managing Directors have been changed so far. The present MD who holds additional charge and employees are not showing any interest in expediting recoveries, Mr. Srinivasulu points out.

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