Navapura co-op society in a mess too

Just three days after the crisis in Surti Modh Vanik Urban Co-operative Credit Society, depositors thronged another co-operative credit society of Surat on Saturday.

A large number of depositors gathered at the Navapura Urban Co-operative Credit Society in the Wadi Falia area to withdraw their monies. The society, however, repaid the desired amount to depositors and clarified that its financial position is sound.

"Saturday's withdrawals were mainly due to rumours and the crisis in various co-operative banks. There is absolutely no problem in the society. The society has deposits of over Rs 10.46 crore, almost 90 per cent of which has been invested in SBI, Canara Bank, Bank of Baroda, Surat Peoples co-op Bank and Surat District co-op Bank. This money is entirely safe."

"The society's loan advances are Rs. 6.56 crore. These figures are quite indicative of the fact that the society has no liquidity problem and is not facing any financial crisis," Rana said.

"There was a lot of rush for withdrawals at the society on Saturday, but if one compares it with the total number of depositors, the rush will appear to be negligible. We have 3949 recurring account holders, of whom just 137 withdrew their deposits. Out of 9301 fixed deposit holders, only 24 withdrew their monies, while just 26 out of the total 614 short term depositors withdrew their monies," he informed.

"We have repaid around Rs. 18 lakh to the depositors on Saturday. If any other depositors also want to take their monies back, we will repay them. But we assure the depositors and account holders that financial position of the society is very sound and hence there is no reason for them to get worried," Rana added.