300 crore from water authority going to Bandhan Bank; 100 crore transferred from SBI

THIRUVANANTHAPURAM: The water authority's accounts are being transferred from public sector bank SBI to a new generation private bank, Bandhan Bank. 100 crore was transferred to the capital branch of Bandhan Bank without even discussing it at the board of directors. 300 crores will be transferred.

Two months ago, the bank's representatives visited the water authority headquarters and held discussions with Managing Director Bhandari Swagat Ranveer Chand. Public sector banks pay 7.25 percent annual interest on fixed deposits. Bandhan Bank offered 8.5 percent. It was also said that if 100 crores were deposited by 20th of this month, 0.25 percent interest will be paid additional. With this, the amount was transferred. According to the Kerala Water and Sewage Act, money can be deposited only in the Treasury, SBI or related Scheduled Banks. The Water Authority Employees Union (CITU) and Water Authority Staff Association (INTUC) have written to the MD to withdraw the decision.

24 accounts

The head office of the water authority manages 24 accounts. 20 are in SBI and four are in Treasury. Previously, all transactions were through one account. Pointing out that this would lead to irregularities, NS Pillai, the former accounts member of the company and the current chairman of the Maritime Board, adjusted the transactions in several accounts.

Bank from Kolkata

Bandhan Bank was started in 2015 with its headquarters in Kolkata. There are 6238 branches in various states.

Difference in interest (for Rs. 300 crores): 3.75 crores

SBI (7.25%): 22.5 crores

Bandhan Bank (8.5+0.25%): 26.25 crore