The Hindu Business Line : Prudential Bank depositors urge AP CM to revive bank

HUNDREDS of depositors of Prudential Bank under the banner of Depositors' Association have met the new Chief Minister of Andhra Pradesh, Dr Y.S. Rajasekhara Reddy, here on Sunday and urged him to initiate measures towards early revival of the urban co-operative bank.

Submitting a memorandum to the Chief Minister, the depositors informed him that the bank has made impressive recoveries of over Rs 151 crore and exceeded the levels of cash reserve ratio and statutory liquidity ratio prescribed by the Reserve Bank of India.

The Depositors' Association President and General Secretary, Mr K. Srinivasulu and Mr L.V. Ramana, respectively, said, unless the State Government extends its financial support of Rs 150 to Rs 200 crore, the RBI might not be coming forwards to revive the bank.

Accordingly, they urged the State Government to use its good offices to get sanction of a long-term loan to the ailing urban co-operative bank or provide guarantee to the RBI against the bank's receivables account for an early revival of the bank.

During the second week of February, the State Government had forwarded the revised reconstruction plan for the bank to the banking regulator, which is awaiting the approval of the RBI.

According to the Depositors' Association representatives, the Chief Minister has assured the delegation of depositors that he would convene an urgent meeting with the officials concerned to help the depositors.

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Prudential Bank depositors urge AP CM to revive bank