Gandhi Cooperative Urban Bank Dismisses Allegations as Baseless.

Gandhi Cooperative Urban Bank (GCUB) chairman Vemuri Venkata Rao on Wednesday dismissed allegations against the nearly century-old bank as "false and motivated."

Addressing a press conference at the bank's head office in Vijayawada, Venkata Rao charged that certain people with personal vendettas are attempting to malign the bank ahead of its centenary celebrations in 2028.

Recalling the liquidation of the century-old Durga Cooperative Bank, GCUB chairman warned against wanton campaigns that could undermine public confidence. He maintained that there have been no irregularities or corruption in the institution that had been founded in 1928.

Explaining details, Venkata Rao said the allegations have risen from the recovery of an unpaid loan taken by the father of a customer Kondeti Sivarama Prasad. After the mortgaged property had been auctioned for ₹63.90 lakh, the bank adjusted ₹32 lakh towards the loan. The bank retained the balance until a dispute within the Kondeti family got resolved.

Subsequently, however, following a directive of the Cooperative department, the GCUB distributed the remaining amount equally among the legal heirs, with the complainant receiving his share.

The bank chairman maintained following allegations, officials inquired into the matter and found no wrongdoing.

Asking GCUB depositors not to be misled, Venkata Rao pointed out that the bank has deposits of ₹698 crore. Its loans are about ₹513 crore. This year, the bank had posted a net profit of ₹9 crore and declared a 10 per cent dividend for its shareholders.

The bank chairman underlined that GCUB has zero NPAs, has expanded its digital banking, increased the loan limits to ₹1.5 crore to ₹ 2 crore. He announced that the bank will relocate its Nuzvid and Hanuman Junction branches to new premises this month, while constructing a new central office at Patamata.