The bank management has asked branch heads in Karnataka to take advantage of the opportunity to mobilise deposits, sources said.
In the June quarter of the current financial year, Bank of India’s domestic deposits grew by 9.91% year-on-year to ₹6.48 lakh crore. Overseas deposit grew by 8.83 per cent to Rs. ₹1.17 lakh crore rupees.
The bank’s total deposits at the end of the quarter stood at ₹7.65 lakh crore against ₹7.38 lakh crore in the previous quarter and ₹6.97 lakh crore in the same period last year.
An email query to the bank remained unanswered at the time of publishing this story.
On August 12, the Karnataka government ordered all departments to close their accounts in SBI and PNB. The circular directed all state departments to close the accounts and recover the deposits. No further deposits or investments would be allowed in these banks, the government claimed, alleging misappropriation of funds.
The government has set September 20 as the deadline for all departments to comply with the August circular issued by PC Jaffer, secretary (budget and resources), finance department. The circular has been approved by Chief Minister Siddaramaiah.
On August 16, the government decided to suspend the circular for 15 days after the two banks asked for time to resolve the matter.
“On August 16, 2024, both the banks submitted written representations to the government, seeking a period of 15 days to resolve the matter. On the same day, senior officials of the bank met senior officials of the finance department and reiterated their request,” the Karnataka government said in the new circular.
The first circular was issued after the government was not allowed to exchange ₹12 crore deposited by Karnataka Industrial Area Development Board (KIADB) following a scam involving bank employees.
On August 15, some media reports said that Canara Bank had drawn up a strategy and assigned a team of senior officials to make the most of the opportunity offered by the Karnataka government’s decision.
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