Sunday, 30 January 2005

Charminar Bank Scam: Rebate to defaulters

Syed Akbar
Hyderabad, Jan 30: The Charminar Bank on Monday announced two special packages for defaulters to enable them to clear their loans but in the process reduced the rate of interest on crystalloid amount causing heavy financial loss.
The bank will charge a simple interest of 11 per cent on loans borrowed by defaulters for the period April 2000-June 2005 and 12 per cent from July 2005 to June 2006. Interestingly, the Charminar Bank had paid 16 per cent interest to depositors up to March 2003 but subsequently reduced it to 7.5 per cent.
Since the interest charged on loans is five per cent lower than the interest paid on deposits during the period April 2000-March 2003, the bank will stand to lose about Rs 50 crore. "The bank should not have implemented 11 per cent simple interest with retrospective effect from April 2000. We depositors stand to lose about Rs 50 crore. This is nothing but benefiting willful defaulters," Charminar Bank NRI Depositors' Association convener MA Taher said.
Charminar Bank managing director Khaleel Khan said defaulters who are willing to clear dues before June 2006 can do so in six monthly instalments. The bank will collect 11 per cent simple interest up to June 2005 and 12 per cent interest from July 2005 to June 2006. They also have the option of repaying the loans in 24 monthly instalments up to December 2007. But 13 per cent simple interest will be collected from them for the period January 2006-December 2007.
Of the 1850 defaulters only 215 had opted for the modified one time settlement scheme. As many as 174 defaulters had paid Rs 2.5 crore towards 10 per cent cystalloid amount. However, the biggest problem for the bank continues to be from 17 big borrowers who together owe Rs 236 crore. They have so far not responded to any concessional scheme or offer made by the bank.

Word Of The Day - Improve Your Knowledge

Word of the Day

Article of the Day

This Day in History

Today's Birthday

In the News

Quote of the Day

Spelling Bee
difficulty level:
score: -
please wait...
spell the word:

Match Up
Match each word in the left column with its synonym on the right. When finished, click Answer to see the results. Good luck!



This Day In History

Mother's Care

Mother's Care
Minnu The Cat & Her Kittens Brownie, Goldie & Blackie

Someone with Nature

Someone with Nature
Syed Akbar in an island in river Godavari with Papikonda hills in the background

Recognition by World Vegetable Centre

Recognition by World Vegetable Centre

Under the shade of Baobab tree

Under the shade of Baobab tree
At Agha Khan Akademi in Kenya

Gateway to the Southern Hemisphere

Gateway to the Southern Hemisphere

Convention on Biodiversity

Convention on Biodiversity
Syed Akbar at the 11th Conference of Parties to the United Nations Convention on Biological Diversity