Time TTD set record straight on deposits row

The news that no written communication was sent to the bankers for submission of revised quotations on the recent bank deposits of ₹4,000 crore has landed the management in trouble.

The TTD deposited ₹3,000 crore with the Andhra Bank and the rest with the IndusInd bank. Eight banks took part in the sealed quotations invited by the TTD.

While the Vijaya Bank, which till Wednesday held the deposits stood first with the highest interest offer rate 7.27 %, the IndusInd bank topped the list among the private sector banks with 7.66%.

But what raised the brows is the decision of the TTD to invite a revised quotation. Though it was done to achieving a higher rate, the fact that the bankers were reportedly informed about the decision involving thousands of crores orally gave rise to serious allegations.

How could the Ändhra Bank, which had offered an interest rate of just 7% and stood fourth among the eight contenders in the first instance when the sealed quotations were invited, walk away with the deposits by offering 7.32% during its second approach still remains a puzzle —more so when the Vijaya Bank came up with an offer of 7.33%.

Though everything looks perfect on the face of it as claimed by Executive officer Anil kumar Singhal, speculation is ripe that the top echelons were kept in the dark with the developments.

Upset over the developments, the Vijaya Bank dashed off a letter to the TTD requesting it to relinquish it from maintaining the left over 50 “e-darshan” counters spread in different parts of the country on which it was incurring a loss of about ₹3 crore annually.

It remains to be seen what steps the TTD would initiate in setting the record straight.