Chandigarh, February 8
Depositors of Bank of Punjab today continued to display signs of panic and withdrew heavy amounts from their accounts and encashed fixed deposits from all branches in the city and its adjoining areas. The Reserve Bank of India (RBI), meanwhile, assured that the bank was safe and financially sound.
There was a big rush of customers outside all branches of the BoP to withdraw their money. Managers pacified the people about the situation and ensured delivery of cash. Executive Director, BoP, Mr Tejbir Singh said: “Your money is completely safe.”
Blaming ‘unscrupulous’ competitors for spreading baseless rumours, he said the bank had already written to the RBI and would be forwarding a formal complaint after a proper enquiry into the matter. Deposits of its customers are insured with Deposit Insurance and Credit Guarantee Corporation of India (DICGC), as in the case of nationalised banks, thereby, guaranteeing the safety of their money, he said.
The Regional Director, RBI, Mr Surinder Kumar, said: “It is only a rumour. Once the source of the rumour is found out, proper action will be taken. BoP is financially sound and its customers need not panic”, he said. The performance of the BoP is satisfactory. Moreover no bank can close its shutters overnight, he said.
Bank of Punjab is sending a team for thorough investigation into the matter. Legal action will follow against anyone who attempted to tarnish the bank’s image, said Mr Tejbir Singh, in a Press conference here today.
Reportedly, a rumour about the bank’s closure, started the cash withdrawal race through ATM cards or otherwise. The rumour
spread across the state and adjoining areas. “We deputed additional staff at Abohar and pumped in more cash in all our branches ”, said Mr Tejbir Singh, adding, “ the customers in Abohar who were withdrawing cash yesterday, realising that it was a rumour are re-depositing their money”. He said the bank had sufficient liquidity in case anyone wanted to withdraw. “It will only cost us interest for a few days, but the confidence of our customers is the most important to us”, he said.
On the bank’s performance, he said the growth of more than 43 per cent in net profits was recorded at the end of the third quarter of the current financial year. “We are meeting with all statutory RBI norms and have a Capital Adequacy of 11.20 per cent against the requirement of 9 per cent .
In fact, we are carrying excess Statutory Liquidity Ratio (SLR), over and above the RBI requirement. The bank is financially sound with a capital and net worth of Rs 200 crore and the customers need not worry”, he said.
To meet the current situation which has arisen due to the rumour, Mr Tejbir Singh said the BoP is planning a campaign for its customers to inform them about the financial stability of the bank.
While even today, in several branches, customers were withdrawing cash and even encashing Fixed Deposits, Mr Singh said not only do we assure complete security of money, the customers in future will see the bank growing.
Plans are to open 20 more branches within three months. In the coming days, revenue inflow will be from two sources — core banking, that is retail etc and a separate business stream where revenue will flow in from foreign currency business, cash management service and gold retailing.
