Shady Deals

Central Bank
quote s supervisors completed preliminary investigations on Pramuka Bank, as depositors awaited a final decision from the Monetary Board on the suspended bank.rn

rnMeanwhile Pramuka Merchant Corporation, an affiliate financial firm, of the bank also stopped repaying its maturing bondholders.rn

rnEmployees say that the bank has invested their provident funds in the bank
quote s own securities leading to a US style loss of retirement funds. rn

rnHowever, top bank officials say the primary cause of their present troubles were bad loans arising from poor economic conditions of the recent past.rn

rnFour weeks after its suspension Pramuka Bank depositors are awaiting a final decision from the Monetary Board on whether the bank can be re-opened or whether it will have to be liquidated.rn

rnMeanwhile, Finance Minister K N Choksy told Parliament that bank supervisors have discovered accounting irregularities. rn

rnIt is alleged that the bank avoided making full provisions on its loans in order