Hindu reports the Chittoor Cooperative Town Bank in Andhra Pradesh had been crisis-ridden for several years but it is on the mend now.
The bank has been in the existence since 1907. A massive withdrawal of money by depositors in the year 2004 had triggered the crisis.
The bank’s fortunes however, turned around last year when one of the directors took over as chairman. The new chairman mobilized deposits to the tune of Rs. 7 crore, apart from recovering another Rs. 4 crore by way of repayment of long-pending loans and interest.
According to the new chairman, a team from the Indian Cooperative Management (ICM), which studied the “miraculous” growth of the bank early this year, had expressed its satisfaction, following which the National Cooperative Development Corporation (NCDC) had agreed to release a loan of Rs. 10 crore. The account holders have regained confidence in the bank, the chairman claimed.
Incidentally, A P Chief Minister N. Chandrababu hails from Chitoor.