Mumbai: Nervous customers, worried the bank would go under, have pulled out 2 billion pounds ($4 billion) from UK mortgage lender Northern Rock sending its shares down as much as 41 per cent.

Shares of Northern Rock, which closed down 35 per cent at 288 pence, have now dropped around 50 per cent since the company announced it might get an unspecified amount of funding from the Bank of England.

Northern Rock opened an hour early to meet the demands of customers wanting their cash who flocked over the weekend — either lining up at branches, or via phone and the internet — to withdraw money from the lender.

As of September 13, Northern Rock had 24 billion pounds in deposits.

The news dented the British pound once more and dragged stock markets in the UK and Europe lower for a second day.

The turmoil in Northern Rock shares fuelled additional speculation about a potential takeover, with the bank seen as having less and less sway over possible buyers.

Meanwhile, the Bank of England has reversed its stance on whether it would provide the funding it''s giving to Northern Rock to a prospective suitor.

Talks with Northern Rock and another UK bank, Lloyds TSB, collapsed last week on concerns that the central bank''s funding would stop once Northern Rock was purchased, according to press reports.

But according to a report in The Times (of London) newspaper, the Bank of England has now reversed course, and will extend such funding.

Besides Lloyds TSB, other possible buyers include Citigroup, Credit Agricole and National Australia Bank, according to various press reports.

also see : General reports on Banks & Financial Institutions