Tarun Karthick
Sri Vijaya Puram, 04 June 2025
A sudden rush of customers at the Diglipur Branch of the Andaman and Nicobar State Cooperative Bank Ltd on 3rd June 2025 led to chaos and withdrawal limits, after a YouTube video by Manoj Paul sparked fear among customers.
In the video, Manoj Paul, who contested the 2024 Lok Sabha elections from the Andaman and Nicobar Parliamentary Constituency under the Andaman Nicobar Democratic Party and secured 8,254 votes (4.08% of the total votes polled), claimed that the bank was going to shut down and urged depositors to immediately withdraw their money to avoid their funds being stuck.
Paul, a native of Diglipur and an influential figure, appears to have triggered widespread panic with his statement. A bank official speaking to the media mentioned that residents took his words seriously, prompting a crowd of hundreds to gather at the branch seeking to withdraw their savings.
Overwhelmed by the unprecedented crowd, the bank was compelled to temporarily cap cash withdrawals at ₹5,000 per customer. The branch manager addressed the media to calm the situation, assuring customers that their deposits were safe and the bank remained financially secure.
Nicobar Times reached out to the Managing Director of the bank for an official response. A video statement was later shared with media outlets in which the MD reaffirmed the bank’s financial health and urged customers not to panic. He also noted that the bank has been working diligently to reduce its Non-Performing Assets (NPAs) and is actively pursuing recovery of outstanding loans.
This episode follows the recent filing of an FIR at the Crime and Economic Offence Police Station at Sri Vijaya Puram, based on a complaint lodged by the Deputy Registrar of Cooperative Societies (HQ). The FIR reportedly pertains to serious irregularities in the sanctioning of large loans and names several individuals, including Mr. Kuldeep Rai Sharma, former Member of Parliament (Congress) and Vice Chairman of the bank, along with the former chairman, directors/bank officials, and beneficiaries. Several national media outlets have also reported on this development.
Later, the Andaman and Nicobar State Cooperative Bank Ltd issued a formal statement to media:
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Amid recent speculation in the financial sector, The Andaman and Nicobar State Cooperative Bank Ltd would like to assure its customers, partners, and the broader community that the bank remains well-capitalized, highly liquid, and financially sound. Our key financial indicators, including capital ratios, asset quality, and liquidity levels, remain strong and well above regulatory requirements.
“Our customers’ trust is our top priority,” said K Murugan, Managing Director of A&N State Coop. Bank Ltd “We are in a robust financial position and continue to operate business as usual. There is absolutely no cause for concern or panic. We remain committed to maintaining the highest standards of integrity, risk management, and customer service.”
A&N State Coop. Bank Ltd has a long history of prudent financial management, a diversified portfolio, and a strong capital base that positions us well to navigate any market conditions. We continue to meet all obligations and provide uninterrupted banking services to individuals, businesses, and institutional clients.
The A&N State Coop. Bank Ltd today reaffirmed its solid financial standing and confirmed full compliance with all regulatory requirements under the Banking Regulation Act, assuring customers and stakeholders there is no cause for concern.
In light of recent rumours and unfounded speculation, The A&N State Coop. Bank Ltd assures the public that it remains well-capitalized, financially robust, and fully operational. The bank continues to maintain capital adequacy, asset quality, and liquidity levels well above the minimum regulatory thresholds set by the Reserve Bank of India (RBI) and other relevant authorities.
We encourage customers with questions to reach out directly to their relationship managers or visit any of our branches. Our team is fully available and ready to provide support and information.
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