The Hindu Business Line : AP Govt funds not to be deposited in private banks

THE Andhra Pradesh Government would issue an order banning Government departments from depositing their funds in private sector banks, according to the State Finance Minister, Mr K. Rosaiah.

The Minister said that a decision to this effect was taken following the episode of Global Trust Bank (GTB) in which the Government had deposited funds to the tune of Rs 7.5 crore. In the interest of the large number of depositors, the State Government would also monitor developments pertaining to the GTB following the imposition of a moratorium on its operations by the Union Government.

Earlier in the day, Mr Rosaiah convened a meeting of floor leaders of the Legislative Assembly. The Minister convened the meeting after the GTB issue was raised in the House by members who expressed concern over the plight of depositors.

Briefing newspersons later, Mr Rosaiah said that as GTB was a private bank, the State Government would not have much say in its affairs.

More Stories on : Financial Policy | Private Banks | Andhra Pradesh

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