Karuvannur bank: Investors, borrowers reach consensus to solve trouble

Karuvannur bank | Photo: Mathrubhumi

Thrissur: Karuvannur Cooperative Bank that was involved in the Rs 300 crore loan scam is finding ways to reach a consensus between investors and borrowers to wriggle out of the current stalemate. The bank hopes to scale down the rising accusations and protests by the investors. But there is a catch, this initiative could affect the security deposit and the pawned gold.

For such an agreement to work an investor has to first identify a borrower who had taken a gold loan from the bank. Thereafter a work out plan is for a mutual decision to add the invested amount to the gold loan and help the borrower to close the loan. This will be informed to the bank.

When the bank approves the request, the borrower can pay back the debt and get the gold back. The gold is then pawned in the nearest public sector bank and the loan amount received is given to the investor who helped the borrower.

This route can come as a major relief for the investors who worry about their investments and borrowers who worry about the mortgaged gold in Karuvannur cooperative bank. There are hundreds of people who are coming forward for such agreements.

Currently, the investors can only withdraw a maximum of Rs 10,000 a week from Karuvannur bank. The investors are able to take back huge amounts of money through this arrangement.

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