Mahesh Bank refutes false allegations

Mahesh Bank refutes false allegations

Hyderabad February : Mahesh Bank condemns and refutes strongly all the false allegations made and spread by the self-styled Shareholders Welfare Association.

The news item published in the section of media and the allegations made therein against the bank by the Shareholders Welfare Association are baseless, manipulated, made with ulterior motive and malafide intentions to tarnish image of the Bank, said the Bank in a press note issued here in the city today.

The bank has expressed surprise and dismay at the manner in which the party with the vested interest has gone ahead disseminating information to the media even before the case is admitted in the court. The court has served notices before admitting to the parties concerned giving three weeks time to reply. The case is not even admitted in the court and the damages are already caused to the public institution by the self-styled Shareholders Welfare Association, which was founded for this purpose just to tarnish the image of the institution.

Mahesh Bank refutes allegations

Ramesh Kumar Bung, Chairman of the bank said a self-styled “AP Mahesh Bank Shareholders Welfare Association” formed by few persons for their personal gains, ulterior motives and it is a puppet in the hands of few disgruntled members, who are running their political agenda through the Association.

Mahesh Bank refutes false allegations
Mahesh Bank refutes false allegations

He further stated that the bank is sound and functioning with strong fundamentals, with consistent and good track record and has a sound financial base with a business turnover of more than Rs.4450 crores, consists of 2950 crores of deposits and 1500 crores of advances. Bank is consistently earning profits and the following are the audited performance highlights of the bank for the year ended 31.03.2020:

i. Net Profit (Before Tax) is Rs. 58.70 crore.

ii. Bank’s owned funds are more than Rs.337 crores.

iii. Net NPAs continue to be 0%.

iv. Capital Adequacy ratio is 18.09% as against the minimum of 9% prescribed by RBI.

v. Bank has been paying dividends continuously for the last 41 years.

vi. Audit classification of the bank continues to be “A”.

It is further stated that the self-styled association is circulating baseless allegations through WhatsApp and Media, by sending letters to RBI, Finance Ministry and also spreading false allegations against the Bank with mollified intentions to defame the Bank keeping in view of their rejection by Shareholders in the elections held to the BOD recently.

He further said that having not succeeded in getting any relief for their baseless allegations from any authorities, they have filed a frivolous petition in the High Court and the matter is under sub-judice

This is an arm twisting tactic to fulfill their ulterior motives. An institution’s reputation is built by many over a period of years. It is the duty of everyone to protect its reputation and keep depositors’ confidence

Umesh Chand Asawa, MD & CEO stated that the Bank is functioning as per Act, Rules and guidelines issued by the RBI & Multistate Co-operative Societies Act & Rules and the Bank comes under the category of “Financially Sound and Well Managed Bank” and has never been penalized by Regulators for violation in its functioning.

Bank cautions the customers/stakeholders not to fall prey to these fictitious allegations which were made for their personal gains. However, to protect the interest of the lakhs of depositors and stakeholders, the Bank will proceed legally against the Association for their illegal actions and spoiling the bank’s image, reputation and spreading / publishing false news against the Bank without any base or proof.

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