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Home  » Business » Scam tainted Charminar Bank to be revived

Scam tainted Charminar Bank to be revived

Source: PTI
January 16, 2003 21:21 IST
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The Andhra Pradesh government, in a bid to provide succour to the depositors of the Charminar Coperative Urban Bank in Hyderabad, has decided to seek clarifications on the guidelines issued by Reserve Bank of India for the revival of the bank.

At a high level meeting with senior officials of the government, Chief Minister N Chandrababu Naidu spoke to RBI Governor Bimal Jalan on Wednesday and sought clarification on certain issues.

This pertained to depositing recoveries from the borrowers to the deposit insurance and credit guarantee corporation before claiming compensation as it may lead to liquidity problem.

The CCUB chairman Syed Sajjad Agha had committed suicide early last year following the discovery of his alleged involvement in 'irregular and liberal financing' to the tune of Rs 200 crores and borrowers had allegedly obtained 'unsecured' loans or with "negligible" security.

According to sources, the Chief Minister after speaking to the RBI Governor, is now planning to send a team of officials to further negotiate and implement the revival scheme.

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