KOCHI: The state government on Tuesday announced several steps, including immediate mobilisation of Rs 50.75 crore and appointment of a senior officer from Kerala Bank as chief executive of Karuvannur Service Cooperative Bank to stem the crisis at the Thrissur-based establishment.
Addressing a news conference in Kochi after a high-level meeting of the department, Cooperation Minister V N Vasavan said the government has also approached the court to recover the title deeds taken away by the Enforcement Directorate from the bank. Without the deeds, the bank could not accept repayment by borrowers, he said. ED has taken away 162 land title deeds worth Rs 184.6 crore, he said.
Vasavan said the Karuvannur bank has deposits at Kerala Bank (Rs 12 crore), Consumerfed (Rs 25 lakh), and Irinjalakuda hospital (Rs 10 lakh), which are being recalled. Further, cooperative societies in Thrissur will provide another Rs 20 crore to the bank to tide over the ongoing liquidity crisis.
As per the plan, those with deposits up to Rs 50,000 will be paid immediately, while with deposits Rs 1 lakh and above can withdraw Rs 50,000. “By this, small depositors will get some relief. Those having emergency requirements such as medical expenses or a marriage can also get money on a case-by-case basis,” Vasavan said.
As directed by the court, the Karuvannur bank will repay depositors 10% of their fixed deposits that matured on September 30, plus 10% of the accumulated interest amount, Vasavan said. He said the bank has repaid Rs 73 crore to depositors since the onset of the crisis, and the rest will be returned in the coming days. While the bank has to recover Rs 501.61 crore, it has to return Rs 202 crore in fixed deposits. “We are going after those who wilfully defaulted on their loans. A total of 18 cases have been registered at various police stations,” the minister said.
The high-level meeting was attended by Kerala Bank president Gopi Kottamurickal, secretary of the department of cooperation Mini Antony and Kerala Bank CEO P S Rajan.