Another co-op bank in Bengaluru stares at collapse, depositors file complaints

BENGALURU: In yet another case involving poorly performing co-operative banks, several depositors have filed cases against the Shushruthi Co-operative Bank in the city over non-payment of deposits.

Separate complaints have been registered by depositors at the Wilson Garden and RR Nagar police station against the bank chairman Srinivas Murthy, his wife Dharinidevi, daughter Mokshata and and bank director Rathnam.

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Shushruthi Co-operative Bank is accused of luring depositors by offering high interest rates of 9 per cent per annum on deposits, but later started giving only 4 per cent interest.

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Following this, some of the depositors wanted to withdraw their deposits from the bank. However, they were allegedly threatened by the bank chairman and others.

The depositors include aged persons, senior citizens and retired government officials. The bank has branches in Wilson Garden, Peenya, Chikkallasandra and Rajagopal Nagar with thousands of depositors.