As co-operative banks in Gujarat keep busting, it is business time for nationalised banks and private banks to gain deposits. In the past 19 months, nine co-operative banks in the state faced liquidity crisis.
Nationalised banks and private banks operational in the state have something to smile because around Rs 30 crore withdrawn by panic-stricken depositors from various co-operative banks have been deposited in these banks.
To mobilise deposits in large volume, managers of nationalised banks have already started wooing these depositors. Private banks like HDFC, IDBI, HSBC, Standard Chartered have also placed their men on the prowl.
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"In some cases, depositors with large amount of money with the co-operative banks, had contacted us even before we could do so," said a senior official of Bank of India.
"Last month, we had received more than Rs 1 crore from depositors, who had withdrawn money from co-operative banks," he said.
"Earlier there was a stigma among some people banking with co-operative banks about coming to us but we have been able to break the ice through our associates," said a manager of Standard Chartered.
In the case of Keshavlal Ambalal Patel, who lost Rs 3.25 lakh because deposits kept with the Visnagar Nagarik Sahakari Bank Limited busted two months ago.
"Though nationalised banks will not pay high interests as co-operative banks, but after withdrawing my money from two other co-operative banks I have deposited it with the Bank of Baroda. I may lose little from the interest side but at least my money is safe," said Patel, a businessman based in Mehsana.
"We admit that there is a sense of insecurity prevailing among depositors of co-operative banks, especially those banking with smaller ones.