D-Day nearing,Noida banks hunt for space

On Friday,out of the 38 plots put up for bid across 23 Sectors,the SBI and Punjab and Sind Bank bought 24 plots. Officials of other banks said while it may be easy for government-owned or aided banks to buy expensive plots,the costs involved were too high for the other banks. “The plots offered by the Noida Authority cost Rs 3 to 4 crore. On top of that,we will have to pay construction costs of over a crore,and an annual rent of Rs 10 lakh per annum to the Noida Authority. Currently,most banks pay around Rs 70,000 to Rs 80,000 as rent for residential plots,” said an official of the Syndicate Bank.

Most banks are now looking at vacant or under-utilised commercial plots that have been sold previously. “Even though the charges might be a little higher than residential plots,we are scouting for such plots,as we will not have to pay the cover charge of Rs 3 to 4 crore. However,now the problem is to find unified plots that are large enough to house bank branches and shift our operations there in time,” an ICICI Bank official said.

At stake for the customers are around 90,000 lockers across the 66 banks. Several customers have already withdrawn their valuables. “I don’t want to take a risk. If the banks don’t shift out in time,and another sealing drive takes place,then I will be in trouble. It is safer to just remove the valuables,” said Ravish Jain,an HDFC Bank customer.

“We hope that we will be able to find plots by March 4. We are even looking at vacant plots in urban villages where 50 per cent commercial activity is allowed. But if nothing happens,we will try and shift the lockers to the nearest available branches. While this may increase the burden on those branches,it is a step we must take,” an HDFC Bank official said.