GICBL put payment restrictions

Palanpur, Sep 22 (UNI) A Large number of account holders thronged the Gujarat Industrial Cooperative Bank Ltd (GICBL) in Palanpur right from morning as news of payment crisis spread in the town.

GICBL Branch Manager V K Thakar said ''the present crisis will come to end within a couple of days. Our Bank is financially viable and have sufficient fund to meet the demands of our 15 thousands customers.'' He said that there is no need to panic explaining that ''as against Rs six crore of Cash credit with the bank, loans of Rs 4 crore had been advanced that too, against the FD Deposits as such there was nothing to be concerned.'' The meeting between the Bank management and Reserve Bank officials will be held in Mumbai and ''we are expecting happy news soon'', he added.

The news of payment restrictions of the GICBL spread among the customers after local branches of other banks refused to accept the GICBL cheques for collections.

Restriction on payments was intimated by the Reserve Bank of India on September 19 in view of rising 'Non-performing Assets of GICBL since last six months'', sources said.

UNI XR/PVN OBB NP1926