Don't fall for high interest: UBI chief

KARIMNAGAR, AUG. 14. The Union Bank of India (UBI) Chairman and Managing Director, V. Leeladhar, has called upon people not to fall prey to higher interest rates of some banks and to verify the banks' performance before making investments.

At a press conference here on Saturday, Mr. Leeladhar agreed that depositors were worried over Global Trust Bank (GTB)'s crisis. "The Reserve Bank of India (RBI) has intervened timely and lifted total moratorium on GTB. Depositors will get about Rs.1 lakh deposits," he pointed out.

He, however, noted that all private banks were in a mess and that some were providing better service to customers.

Coop. banks' muddle

On the problems in cooperative banks, Mr. Leeladhar, who is also Chairman of the Indian Banks Association (IBA), said there was no coordination between the RBI and State Governments and it was leading to messy situations for cooperative banks.

Politicians, who were occupying posts of these banks, were adding to the woes, he noted.

Special legislation

Calling for regulation and streamlining of cooperative banks, he favoured bringing out special legislation to protect the interests of depositors.

The IBA Chairman appealed to bank staff, who have called for a nation-wide strike on August 24, not to cause any inconvenience to customers. Assuring that issues would be settled amicably at the August 19 meeting with union leaders, he said they would try to convince the leaders to allow transfers and settle the wage revision issue also.

He inaugurated the bank's ATM facility. He participated in credit mela at Padmanayaka kalyana mandapam where he distributed assets and loans worth Rs. 1.5 crores to women self-help groups.

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