The withdrawal of deposits from NIC Asia Bank by depositors has increased. After hearing various rumors and negative publicity, depositors are rushing to withdraw their money from the bank, fearing that the bank might collapse. Within just a month, depositors have withdrawn more than 14 billion rupees from the bank.
While deposits in other commercial banks are increasing, NIC Asia's deposits are decreasing. Depositors feel insecure about their money and are opting to deposit elsewhere.
Although financial statements appear strong, various controversies have left depositors confused and worried. The bank's failure to comply with central bank regulations, resignation of a senior official following government scrutiny, inaccurate information submitted to the central bank, and violations of regulations during loan disbursements were issues raised. With such controversies, depositors feel uncertain about the safety of their money and are inclined to withdraw their funds.
Moreover, if the bank closes 50 branches, as reported, and engages in aggressive advertising, depositors may become more skeptical, leading to further withdrawals and deteriorating the bank's situation.
While financial reports may not seem alarming, continuous withdrawals or the impact of controversies could prevent the bank from lending further, leading to a significant crisis.
In the month of Magh alone, deposits in NIC Asia Bank reached 3 trillion 67 billion 68 crore. However, despite an increasing number of people saving with the bank until Poush, Magh saw more withdrawals than deposits, indicating a shift in depositor behavior.
Depositors have withdrawn more than 14 billion rupees in just one month. This marks a significant decrease in NIC Asia Bank's deposits within the current fiscal year's seven-month period, the first such decline in NIC Asia's deposits.