Press Esc to close
Friday 01 August 2014
News updated at 3:19 AM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
Sunny day

Amanath Bank's takeover by Canara Bank cheers depositors

Bangalore, Sep 30, 2013, DHNS:

The formal announcement by Amanath Cooperative Bank (ACB) that public sector lender Canara Bank has agreed to take over (ACB) has come as a much-awaited relief to employees and depositors of ACB.

The state convenor of an non-governmental organisation Association for Protection of Civil Rights (ACPR), Irshad Ahmed Desai said, “We have a deposit of Rs 2.95 lakh with Amanath Bank and were unable to withdraw for the past few months. We hope our problems end soon.”

Similarly, As-Sidique Trust secretary Syed Tanveer Ahmed heaved a sigh of relief on Canara Bank's take over of ACB. “We have about Rs 3 lakh deposit and were not able to withdraw for the past six months. Now, we hope some good results will emerge.” The Trust has been a customer of ACB for the past five years.


The president of ACB, Naseer Ahmed said that after Canara Bank's September 27, 2013 communication to ACB to take over, the next steps would be to approach the Registrar of Cooperative Societies and Reserve Bank of India conveying them of Canara Bank's decision. “This will be followed by the annual general meeting of ACB shareholders to formally approve the decision,” he said.

When contacted, the deputy general manager and chief compliance officer of Canara Bank, S Ramesh declined to comment. Sources said that the due diligence to decide on the take over was done by auditors Varma & Varma, Bangalore.

A ACB employee for close to 20 years, requesting anonymity, said that since April - when the Reserve Bank of India imposed cap on withdrawals by ACB depositors from each account to Rs 1,000 in a six-month period – the bank has made hardship payments to depositors for Rs 30 crore.

He added the bank has 2.40 lakh depositors who hold about Rs 390 crore, while its advances amount to Rs 250 crore, including NPAs and questionable advances of Rs 103 crore. “Liquidity is no issue, but worry is that deposit erosion has gone up from 18 per cent earlier to about 20 per cent now,” he said.

Go to Top

Photo Gallery
Vikas Shive Gowda of India throws the discus in the men's discus final...

Vikas Shive Gowda of India throws the discus in the men's discus final...

Babita Kumari of India holds up her gold medal as she poses for photographs...

Babita Kumari of India holds up her gold medal as she poses for photographs...

A diver is seen underwater during a practice session at the 2014 Commonwealth Games...

A diver is seen underwater during a practice session at the 2014 Commonwealth Games...

Palestinian firefighters inspects the damage of a destroyed milk factory...

Palestinian firefighters inspects the damage of a destroyed milk factory...

NDRF personnel with a body of a victim of landslide at Malin village...

NDRF personnel with a body of a victim of landslide at Malin village...

Abhisekh Bachchan with singer Usha Utthup cheers his team during Pro Kabaddi League match...

Abhisekh Bachchan with singer Usha Utthup cheers his team during Pro Kabaddi League match...

South Africa's Rhett Halkett in action against India's Chandanda Nikkin in CWG 2014...

South Africa's Rhett Halkett in action against India's Chandanda Nikkin in CWG 2014...

Abhisekh Bachchan greets his team players after Pro Kabadi League match win against Telugu Titans...

Abhisekh Bachchan greets his team players after Pro Kabadi League match win against Telugu Titans...

India's Yogeshwar Dutt celebrates after winning the Gold Medal in CWG 2014...

India's Yogeshwar Dutt celebrates after winning the Gold Medal in CWG 2014...

India's Navjot Kaur celebrates after winning a bronze medal against Scotland's Sarah Jones during...

India's Navjot Kaur celebrates after winning a bronze medal against Scotland's Sarah Jones during...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523