UWB depositors petition High Court

Mumbai, Sep 19 (UNI) Depositors have petitioned that the Bombay High Court alleging that the United Western Bank had not taken them into confidence regarding its amalgamation with IDBI.

A division bench comprising justices R M S Khandeparkar and V M Kanade were told that even the Reserve Bank of India, which was aware that in the last two years the UWB had made losses running to almost Rs 100 crores, did not inform the depositors as to why a moratorium was imposed recently on the UWB. The moratorium will be in force till December 1 and a depositor can not withdraw over Rs 10,000 at any given time.

The petitioners contended that they had tried to obtain information from the UWB but were denied the same. They contended that the amalgamation is not required, as more than 70 per cent of the customers were satisfied with the services of the Bank.

The boards of the two banks, IDBI and UWB, have been given time till September 27 by the Reserve Bank of India to discuss the amalgamation scheme and place their objections and suggestions before the Central bank. The RBI has been directed by the court today to file an affidavit submiting explanations to the questions raised by the petitioners. The case will come up for further hearing on September 26.

UNI ARM MAZ RA RS2144