Hans News Service Vijayawada

GandhiCooperative Urban Bank Chairman Vemuri Venkata Rao dismissed allegations levelled against the nearly century-old institution, describing them as “false, baseless and motivated.” He said attempts to tarnish the bank’s reputation for personal or political reasons were unfortunate, particularly when it was preparing to celebrate its centenary. Addressing a press conference at the bank’s head office at Governorpet here on Thursday, along with members of the governing body, Venkata Rao said the bank, established in 1928, has earned the trust of customers through transparent administration and sound financial management. Clarifying the allegations, Venkata Rao said they were related to a loan recovery case in which a mortgaged property was auctioned for Rs 63.90 lakh after the borrower defaulted and failed to respond to repeated notices. After recovering the bank’s Rs 32 lakh dues, the balance amount was kept in a suspense account due to disputes among the legal heirs and was later distributed with accrued interest as per Cooperative Department guidelines. He said the complainant had already received his share but continued to level allegations despite official inquiries finding no irregularities.

Highlighting the bank’s performance, Venkata Rao said it currently has Rs 698 crore in deposits and over Rs 513 crore in advances, while registering a net profit of Rs 9 crore during the current financial year. The bank has also declared a 10% dividend for its members. He said the bank had reduced its Non-Performing Assets (NPAs) to zero by March this year in compliance with Reserve Bank of India guidelines. It has also introduced digital banking services and increased its loan limit from Rs 50 lakh to Rs 1.5- Rs 2 crore for eligible borrowers, he said. As part of its expansion plans, the bank would shift its Nuzvid and Hanuman Junction branches to new premises on July 10. Also, he said his bank would construct a new central office and branch at Patamata in Vijayawada.