The Hindu Business Line : Prudential Co-op Bank depositors in a quandary; threaten stir

DEPOSITORS of the beleaguered Prudential Co-Op Bank are in a state of quandary with their savings locked up and facing uncertainty running from one agency to another seeking early redressal of their grievances.

The Depositors Association has now decided to go on a hunger strike seeking revival of the bank, payment of their dues including interest on deposits.

The President of the association, Mr K. Srinivasulu, and the General Secretary, Mr L.V.Ramana, said since more than 12 months the deposits have not been handed over to the depositors.

About 2.8 lakh depositors are at the receiving end as their money is locked up in the bank.

Hundreds of the senior citizens have been impacted by this, Mr Srinivasulu told Business Line.

Last year, the State Government had announced a package for the revival of the bank, which required RBI approval.

After the co-operative bank closed operations, the management had stepped up efforts to mobilise funds from people, particularly corporate defaulters, who raised loans from the bank.

This has yielded results and recoveries have crossed more than Rs 100 crore, they maintained.

Depositors have submitted a memoranda to several authorities including the bank management, the RBI and the State Government seeking early resolution of their problems but in vain.

They maintained that if the bank management revives the bank with a revival package, thousands of depositors, would be able to receive their funds.

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Prudential Co-op Bank depositors in a quandary; threaten stir