Shimoga: In the wake of hurried withdrawals of deposits from the Shimoga District Central Cooperative (SDCC) Bank by customers following an alleged gold loan scam, the SDCC Bank Workers’ Federation has requested the State government to instill confidence among the customers about the safety of their deposits, said T. Umesh, president of the federation.
Members of the federation had requested Minister of State for Primary and Secondary Education Kimmane Ratnakar, who is also in charge of the district, to apprise the government on these developments and take appropriate action to ensure the normal functioning of the bank, he told this correspondent here on Monday.
The financial condition of the bank was stable. The SDCC Bank had a working capital of Rs 1,031 crore. Of this, Rs 200 crore had been deposited with the Reserve Bank of India as per statutory liquidity ratio (SLR) requirements.
A sum of Rs 445 crore had been given as agricultural loans to more than 85,000 farmers. A sum of Rs 285 crore had been advanced as non-agricultural loan. As these loans could not be recovered prior to the completion of their stipulated period, the bank would face difficulty in honouring the demand from customers for withdrawal of deposits, he said.
