Yes Bank Crisis: TTD Bank Deposits Safe Due To Timely Withdrawal

TIRUMALA: The decision taken by the Tirumala Tirupati Devasthanam (TTD) Board under the aegis of its Chairman YV Subba Reddy to withdraw deposits to the tune of Rs 1,300 crore some months ago from Yes Bank, has been widely appreciated by the Devotees and the public at large. On Thursday, the Reserve Bank of India (RBI) capped the depositor withdrawal at Rs 50,000 per account for a month after the Bank went into a crisis due to bad loans and other financial issues, which were plaguing the bank.

It may be recollected that during the TDP regime the TTD had deposited funds with four banks including Yes Bank. YV Subba Reddy after taking charge as Chairman of the TTD Trust Board, conducted a meeting about the financial status of the board and the TTD deposits. As per a comprehensive report from the officials about the financial position of the four banks, they identified that Yes Bank was going through a financial crisis. In foresight, the Chairman issued instructions for withdrawing the deposits immediately. He had also brought the issue to the notice of Chief Minister YS Jagan Mohan Reddy.

The TTD board had taken a key decision to deposit the funds only in nationalised banks last year. The prior practise of depositing funds in private banks during the regime of former chief minister of Andhra Pradesh N Chandrababu Naidu was stopped after devotees had raised objections that the govt then had deposited Rs 1400 Crore in a private bank. Petitions were also filed in the High Court after which the Court had directed that the deposits should be made only in national banks. Based upon this, the TTD has taken the decision of depositing the funds only in national banks. (With Imput credits To TNIE)

Also Read: TTD Key Decision: Deposits In Nationalized Banks Only