Hyderabad: Dhana Bank, an urban cooperative bank operating from Eluru in West Godavari district of Andhra Pradesh, is facing a run as depositors stormed the banks premises late on 11 May 2002, seeking to cancel demand drafts that had not been honoured by other banks.

Earlier, the depositors had lodged complaints with the police, but the police could not find the bank chairman or the vice-chairman. But the police have taken into custody some bank staff.

Eluru circle inspector G S Rajababu raided the bank late in the night, at 11 pm, and received complaints from the depositors. The police, in the process of investigation, could not find bank chairman R Satyasagar or vice-chairman D Ravikumar.

But three days ago, Satyasagar had issued a statement asserting that there was nothing wrong with the bank and that it was functioning within the rules and regulations set by the Reserve Bank of India, and the depositors need have no apprehensions.

He is also reported to have said that the failure of the Krushi Bank in Hyderabad had created many problems for the cooperative banks in the state, and whenever there was any problem minor or major depositors were pressing the panic button.