Karuvannur bank begins depositor repayments today

IRINJALAKUDA: The administrative committee will refund deposits to investors of the Karuvannur Cooperative Bank which is recovering from a crisis. Overdue deposits above Rs 50,000 up to Rs 1 lakh can be withdrawn starting today. Starting on the 11th of this month fixed deposits with maturities up to Rs 50,000 can also be withdrawn. Savings depositors can withdraw up to Rs 50,000 from all bank branches starting on the 20th.

With effect from December 1, maturing deposits of more than one lakh rupees will be allowed to pay fixed percentage interest on the amount and renew the deposit with interest. Under this plan, out of a total of 23,688 Savings Bank depositors, 21,190 will be eligible for full withdrawal while the remaining 2,448 will be eligible for partial withdrawal.

Out of a total of 8,049 permanent investors, 3,770 will be able to fully withdraw their investments and interest while the remaining matured investors will be able to partially redeem their investments and interest. A sum of 79 crores can be returned for overdue fixed deposits. The money was raised through a Consortium of Primary Cooperative Societies in the district, the Cooperative Development Welfare Board and by withdrawing the deposits held by Karuvannur Bank in Kerala Bank and other cooperatives.

During a press conference, the administrative committee also alleged that the documents seized by the Enforcement Directorate (ED) were not returned and the loan repayments could not be made. The ED has taken control of 162 properties worth 186 crores. Chairman PK Chandrasekaran, Adv P Mohandas and AM Srikanth stated that only 103.6 crores of fraud have occurred in the bank and the rest is media propaganda.