Mumbai: Mumbai-based South Indian Cooperative Bank Ltd (SIB), which is working under RBI (Reserve Bank of India) directions following a run on its deposits, has sought a hike in existing ceiling of Rs 1,000 on withdrawals from savings or current account to meet the emergency needs of depositors.

"We have had preliminary discussions with RBI on this issue raising the ceiling on deposit withdrawals but a clear picture will emerge only after the annual general meeting slated on August 16," the bank chairman Raghavan Sarathy told in Mumbai today (Aug 10, 2004).

"We will also seek views from depositors on their requirements," he said.

Bank's chief executive officer P K Sukhtankar said the bank has made payments to all depositors who had approached for withdrawals yesterday (Aug 9, 2004).

The cumulative withdrawals now stand at Rs 17 crore and the bank has adequate liquidity to meet further demand from depositors, Sukhtankar added. RBI had yesterday placed some restrictions on the bank, which is saddled with high NPAs (Non-performing asset), on granting fresh loans, renewal of advances and fixed a ceiling of Rs 1,000 on withdrawals from savings or current account. The bank has also been barred from making investments, selling, transfer or otherwise, dispose of properties or assets without its approval in writing, the RBI said.