Bengaluru bank blames 62 dud loans for crisis
Karnataka

Bengaluru bank blames 62 dud loans for crisis

Agency News

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.

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. 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.

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