The Hindu : Andhra Pradesh News : Prudential bank depositors in a fix

Online edition of India's National Newspaper
Wednesday, May 25, 2005

Andhra Pradesh

Andhra Pradesh

Prudential bank depositors in a fix

Staff Reporter

Seek immediate posting of special officer

HYDERABAD: The depositors of Prudential Cooperative Urban Bank are in a dilemma ever since the High Court struck down the appointment of a liquidator on May 5, as no responsible official is available at the administrative office in Secunderabad to answer their queries. The depositors were at a loss not knowing whom to approach about the fate of their funds, totalling over Rs.360 crores, that were locked up in the bank since its closure on March 21, 2003, said Veeraswamy, vice-president, Prudential Depositors' Association, Twin Cities branch. "This dilemma is telling upon the health of several senior citizens," Mr. Veeraswamy said.

The president of the association, K. Srinivasulu, who had not been able to withstand the tension, suffered a setback following damage to one of his kidneys. He had to undergo dialysis at least thrice a week.

In contrast, Mr. Veeraswamy said, the bank's employees got bonus despite it being non-functional. The association was unhappy with the management/staff for their failure to realise dues from 21 big defaulters who owed Rs.200 crores. It wanted the amount collected be paid to depositors.

General body meet

The association also demanded posting of a special officer, expeditious merger of the bank with Andhra Bank and cutting administrative expenditure.

It was planning to hold a general body meeting in the first week of June to decide its future course of action.

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