The Hindu Business Line : Visakha Co-op Bank to pay 20 pc

At the annual general meeting here, the resolution to pay 20 per cent dividend was passed and it was also decided that it should be paid before October 31. Mr M. Anjaneyulu, the Chairman, presided over the meeting.

The bank earned a net profit of Rs. 4.03 crore for the year, which was Rs 27.53 lakh more than that of the previous year. The bank's deposits amounted to Rs 240.87 crore and the advances Rs 142.46 crore during 2003-04 as against Rs 308 crore and Rs 183 crore respectively during the previous year.

The slump in deposits and advances during the year was attributed by the governing body to a ``smear campaign launched by certain sections'' against the bank over its deposits in the Prudential Bank (Rs 22 crore) and Vasavi Bank (Rs 4 crore). Both Hyderabad-based co-operative banks, it may be noted, had failed.

In an interview here on Monday, Mr Anjaneyulu said that the bank was hopeful of recovering a substantial portion of the deposits with the two banks.

``The Government has not so far cancelled the licences of the banks and they have not gone into liquidation either. However, both the banks have recovered dues on a large scale. I am given to understand that Prudential has recovered Rs 170 crore and Vasavi Rs 69 crore. Besides, they also have a good asset base. We are trying to get back the monies. At present, they say the RBI stipulations do not permit payment. We may move the court too, if necessary, to recover it,'' he said.

Admitting that the bank had suffered during 2003-04 due to campaign over these two deposits, he said that the bank had recovered well and regained lost ground. ``The slump in deposits was largely due to the run on the bank, but the softening of interest rates also contributed to it. Anyway, we have got over it and we are looking forward to the future,'' he said.

In spite of the setback, he said, the bank was still in the number one position in share capital and the second position in deposit collection and loan disbursement among the urban co-operative banks in the State.

He was critical of the policies of the Union and State Governments with regard to co-operative banks.

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