Close down half your branches: High Court to Amanath Bank

The High Court on Thursday suggested the Amanath Co-operative Bank to close down at least 50 per cent of its branches to cut down losses.

Justice Abdul Nazeer, who began hearing the matter after justice Ram Mohan Reddy recused from hearing, questioned the bank about the number of branches it has, number of employees and expenditure incurred in the form of salary and others.

The bank informed that it has 300 employees working in the eleven branches and the monthly salary expenses totalled to Rs 85 lakh.

Justice Nazeer questioned whether so many branches were required and so much expenditure was necessary when the bank was in crisis. He suggested to close down atleast 50 per cent of the branches.

When the bank submitted that it was not an easy task since it required the Reserve Bank of India’s approval, Justice Nazeer said, “Tell the RBI that it was a High Court order and obtain permission to close them,” he said.

When the court was informed about Congress leader Jaffer Sharief’s affidavit ensuring more money as deposit to bail out the bank from crisis, the court said that Sharief must donate the same for the welfare of the community.

Justice Nazeer also directed the board of directors of the bank and officials from the Co-operation Department to appear before the court by the next date of hearing, failing which they will be summoned.