Another bank gets the runs

Five placards screamed ‘‘Don’t panic. These are rumours.’’ But at 11.45 pm on Friday night, a hysterical crowd of d...

Five placards screamed ‘‘Don’t panic. These are rumours.’’ But at 11.45 pm on Friday night, a hysterical crowd of depositors outside the Punjab and Maharashtra Co-operative Bank was in no mood to believe the management.

Nearly Rs 5 crore was withdrawn in just one night even as bank staff worked in shifts to cater to customers. A late night statement from the RBI — saying the bank’s financial health is all right — came too late.

At midnight, the stretch of Mahakali Road from Takshila Colony to the bank was wide awake with depositors walking in to encash their deposits. A police van parked outside the Bank could do little to control the 250 strong crowd. Batches of 40 people were being taken inside as police cordoned off back door entry. No one in the long, unruly queues of depositors, knew the reason behind the panic.

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It was 3.00 am, when the last of the depositors left with cash and demand drafts in hand. ‘‘I have been waiting since 8 pm, we’ve heard it’s a rumour but it is difficult to go and rest when your entire life savings are deposited in a bank that may go bankrupt,’’ said Altaf Jafferbhoy, auto spares exporter.

The RBI insists this isn’t a pattern. ‘‘The banking system is strong and people are reacting to rumours,’’ said RBI Deputy Governor Rakesh Mohan.

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