Prudential directors absconding

HYDERABAD: The crisis in Prudential Cooperative Urban Bank deepened on Monday with all its branches in the city remaining closed. Depositors, who gathered at the bank offices to withdraw their money, shouted slogans demanding their money be returned.
The day also witnessed a series of protests led by bank staff at properties owned by some of the persons who availed very large loans demanding immediate repayment to keep the bank afloat.
Even as the bank customers and the staff were busy with their agitations, the joint action committee (JAC) of the bank’s employees alleged that seven directors of the bank, including its chairman and vice-chairman were absconding.
The JAC members said that the bank’s chairman B Muralidhar, vice-chairman Madhusudan, directors A N Krishna Kumar, C M Prakash, D Vinod Kumar, P Ramakrishna and Bal Reddy are absconding.
A owner of a prominent city club and a hotel, who is said to have taken Rs 45 crore loan, had assured the bank staff on Monday morning, after they staged a dharna at his hotel, that he will arrange part repayment of the loan by evening. But the staff had to return empty handed in the evening.
About 200 employees of the Prudential Bank headed by the bank’s MD P Pullaiah, directors P R Mohan, G V Nair, Vittal Rao and joint action committee members Vidyasagar and George Reddy, organised dharnas in front of the hotel, a film studio and the residence of a cinema owner. The film studio is said to owe Rs 4 crore to the bank while the cinema management has to pay over Rs 20 crore.
Some others who had taken huge loans running into crores of rupees include an MLA, a former MP, a former MLA and a close relative of a minister in the state Cabinet, along with the bank’s chairman, vice-chairman and their relatives.
Allegations are also doing the rounds that a minister in the state Cabinet played a role in one of his close relatives getting a huge loan while another minister is said to have known the way the bank was giving away the loans.
The RBI had instructed the management in August 2002 not to collect deposits from the people anymore as the bank’s financial position was bad. However, the management violated the directive and accepted deposits from the customers till recently, sources said.
On Monday, the JAC, after dharna at Muralidhar’s house, urged the Begumpet ACP B Reddanna to probe the irregularities committed by the bank management.
About 60 depositors lodged complaint with the Kukatpally police demanding action against the bank management.