Ahmedabad, March 12: Financial problems in various stock markets cast a pall over Ahmedabad based cooperative bank Madhavpura Mercantile CoOperative Bank with panic withdrawal from its customers of over Rs 65 crore worth of deposits following the rumour that the bank has given Rs 150 crore guarantee to big bull Ketan Parekh. Huge withdrawal of deposits on Monday triggered the bank into deep liquidity crisis and it has become extremely difficult for the bank to repay the whopping Rs 1,100 crore deposits, a top level RBI official, who is investigating Madhavpura Bank's transactions, told The Financial Express.On a second consecutive working day, large number of depositors queued up at various branches of the bank for withdrawal of their deposits. According to market sources, the huge scale of deposit withdrawal from the bank has sparked off the rumour that the bank has granted bank guarantee to the tune of Rs 150 crore to the big bull Ketan Parekh. In addition to that, people have apprehension that a relative of the bank's chairman has allegedly paid off his due at the stock exchange through Mahavpura Bank's fund.
The market sources claimed the relative allegedly owed this amount since he had speculated in Zee Telefilms and incurred huge losses worth Rs.50 crore.
However, chairman of the bank Nandlal Parikh, refuted these allegations and said that his bank has not given any kind of guarantee to the big bull Ketan Parekh.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
