AIABOF to continue fight against bank merger plan

BS Reporter / Kolkata/ Berhampur December 29, 2009,

All India Andhra Bank Officers’ Federation (AIABOF) has strongly opposed the government’s move to consolidate and merge the public sector banks (PSB) in the country and vowed to fight against it.
Stating that the move will destabilize the public sector fabrics of the banks, the general secretary of the AIABOF K.Ramakoteswar Rao said the merger and consolidation of the PSBs was not necessary when almost all the banks were earning profit and making good business.
“Despite the global economic meltdown, the Indian banking industry is doing well and earning profit and there is no need to merge or consolidate the PSBs in the country” said the president of the AIABOF, N.Raja Gopal Reddy.  “We oppose it and will fight against the government’s decision” said Rao. He was addressed at the conference of the Berhampur unit of the AIABOF here on Sunday. The Andhra Bank officers from different parts of Orissa and Andhra Pradesh attended the conference. The president of the AIABOF presided.

Fraud case against Yes Bank employee

Tuesday, December 29, 2009

Shruti Panchal, an employee of Yes Bank was a relationship manager in the bank's wealth management division. She with the help of other people, cash in money from one its client’s Rajesh Rathi mutual funds worth about Rs 66 lakh, leading to a loss of about Rs 34 lakh to the client.

In 2007 along with her superior approached Rajesh Rathi, a MD of Gandhinagar-based MGD Electronics, and suggested him to invest in mutual funds through the bank's wealth management services. He agreed and a total of Rs 1 crore was invested in four funds in December 2007. The mutual funds were in the name of the company.

When Rajesh came to know about the fraud he approached the police. But police refused to register a case. Then MGD Electronics moved the court. In view of this Gandhinagar court passed an order in a case of alleged forgery against Shruti Panchal. She had forged the signature of Rajesh Rathi, also prepared a duplicate company seal, changed bank mandates with forged signatures and the seal, and cash in money invested in mutual funds worth about Rs 66 lakh.

The court has also instructed the police to investigate other unnamed bank officers as there is possibility that she might have committed fraud with the help of other people. The court stated that people keep their money in banks as they find it safe, but due to such cases people can loose confidence in banks.

MGD Electronics has also filed a case against Yes Bank in consumer court. The next hearing of the case will be held on January 19.
  by J. Prasad