Karnataka - Hubli-Dharwad   

Bank to resume operations

HUBLI: The Reserve Bank of India (RBI) has permitted Gurusiddheshwar Urban Cooperative Bank of Hubli, which was forced to stop functioning owing to financial crisis four years ago, to resume operations.

Addressing presspersons here on Saturday, the chairman of the board of directors of the bank, Shankranna Munavalli, said the RBI issued an order on February 11 permitting the bank to resume operations after considering the steps taken up by its board of directors for its revival.

Mr. Munavalli said that after the board of directors came into existence on May 24, 2004, loans amounting to Rs. 14 crore had been recovered of the Rs. 30 crore disbursed.

After the introduction of steps for recovery of loans, the bank attracted 400 new members last year. It had Rs. 2.25 crore in government security deposits and during the same year, Rs. 2.50 crore had been paid to depositors. These steps had resulted in the RBI’s permission to resume operations, he said.

Mr. Munavalli said that it was the first urban cooperative bank to be revived of the 28 such banks that were in distress. It was a coordinated effort by the directors, shareholders and depositors.

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