The Hindu Business Line : Chittoor co-op bank in crisis

WITH accumulated losses to the tune of Rs 22.48 crore and erosion of its deposit base, the Chittoor Co-operative Town Bank (CCTB) is facing a financial crisis, the Minister for Cooperation, Mr K. Laxminarayana, told the Andhra Pradesh Legislative Assembly on Friday.

The Minister said that CCTB has deposited Rs 13.43 crore in Krishi, Vijaya Mahila, Vasavi and Prudential Cooperative Urban Banks. The interest accrued on these deposits stood at Rs 12.59 crore. However, all these four banks became financially sick.

Replying to a question raised by Mr A.S. Manohar and others during the question hour, the Minister disclosed that the Reserve Bank of India (RBI) had directed CCTB not to mobilise new deposits from September 23, 2004.

As per the advise of the RBI, he said, the board of CCTB was superseded on September 24, 2004 and the Chittoor Divisional Cooperative Officer was appointed as special officer.

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