Bengaluru: Call it a stroke of luck or the astuteness of the Tirumala Tirupati Devasthanam (TTD) authorities, but gold and cash deposits worth Rs 1,300 crore in the name of Lord Balaji were withdrawn from Yes Bank, just months before the Reserve Bank of India placed it under a moratorium.
The Tirupati temple, one of the richest in the country, had several deposits in private banks, the largest being with Yes Bank. Speaking to ThePrint, TTD chairman Y.V. Subba Reddy confirmed that after he took over, while examining the books of accounts, he realised that the financial status of Yes Bank was not sound.
“The credit goes to Lord Balaji who made me understand the bank’s financial position and gave me direction to save the money of the lakhs of devotees whose offerings I am just a custodian of,” Reddy said.
The entire sum of Rs 1,300 crore was withdrawn on 30 October 2019, after a board meeting earlier that month.
TTD’s cash deposits crossed Rs 12,000 crore at the end of the 2018-19 financial year. The income earned from interest on deposits alone has been projected at Rs 706 crore — the second-biggest source of income for the temple apart from the offerings made by the devotees.
Also read: How Yes Bank plunged into crisis: A timeline
‘Investing in private banks not the norm’
Reddy squarely blamed the previous board of the TTD, appointed by the Chandrababu Naidu-led Telugu Desam Party, for investing close to Rs 5,000 crore in private banks, which he claimed was not the norm.
“Normally, we put the money in government or nationalised banks. But I was surprised that they had invested in various private banks,” Reddy said.
“We have close to Rs 11,000 crore in the name of Lord Balaji invested in various banks. I told my officials that putting the devotees’ contribution in private banks is ridiculous and that we should withdraw the money immediately. No money should be deposited in private banks, I further instructed them,” Reddy explained.
Reddy said the TTD had invested in several private banks, including Yes Bank, IndusInd Bank, ICICI Bank, Federal Bank and South Indian Bank. All the money has now been withdrawn and invested in nationalised banks, he added.
TTD officials claim they merely follow instructions of the board with regard to the choice of banks, or how much money or gold should be deposited.
A senior official of the temple body said on the condition of anonymity that it had earlier deposited donations in private banks as the interest rates were higher than nationalised banks.
However, Reddy said: “I made it clear, just to get a profit of one or two percent more interest, we have no right to put the contributions of the devotees to Lord Balaji at stake.”
Also read: Tirupati board appointments were always controversial, and Jagan has only made it worse
Perhaps the yes Bank would not have given commission and thus they would have shifted the deposits. The details of new bank is not known. Anyhow, something good has happened.
Let’s congratulate Subba Reddy Garu for his foresight and out of the box decisions wrt preservation of the Lord’s Assets. TTD management should adopt frugal policies in consonance with the dynamic needs if the day. Though most of them are from IAS cader their powers are fettered by the Governments which are political. So they should learn to see clearly and voice their opinions boldly without politics.
Om Namo Venkateshaaya.
I bought some shares f Yes bank on some NEWS n disposed f immediately fr a small profit simply b’cas “Greed will lead to Grief “
I think that the time is to be conservative with finance.stick to only nationalised banks.Also,NCD cannot be trusted after the Reliance fiasco.
I closely know the banking. All Banking activities including Co-Operative Banks & Private Banks are commanding public confidence & NPAs are less than Govt Banks. When Top heads of such Banks are bribed or indulge in unfair activities, such Banks are exposed to loss. RBI has close surveillance on Banking activities. Some time RBI & Chief Vigilance Commission officers join hands with such unfair Banking activities.
Spend that enormous amount of money on the poor, Dalits & downtrodden of Hindu communities. Just don’t stash the wealth in banks, nationalized or otherwise, to earn more interest, profit, etc. Greed is not what any God teaches.
I have served in INS kalinga as civilian supervisor. Once ICICI officials came and consulted my boss who is commander to open salaries account of civilians. Boss is ready however I oppose saying that Global Trust Bank was closed and same thing with ICII bank tomorrow I advised him as central givernment all transactions should be with Nationalised Bank hence he heeded to my advise and ICIC bank not allowed. However, now some establishments including HQENC, ND,and MO opened salaries account with ICICi which is private bank. Tomorrow same thing with ICIC what is responsibility of Naval Authorities.
The only sad part of the story is Lord Balaji has not helped others account. May be, they are all sinners and reaping the fruits of their misdeeds of last birth.
Jagan Mohan Reddy got rewarded by the BJP for making life hell for Chandra Babu Naidu, by leaking to him the news about the impending doom of Yes Bank. And Jagan Mohan Reddy must have passed on the information to the TTD chairman in top secrecy, who affected the huge withdrawals quickly.
Stupid fellows think in stupid way , as u think
I was also concerned when one school society where I was assigned a 8 month assigned work, opted to shift from nationalised bank to YES Bank. The members passed resolution and they did shift entire funds and staff salary account as well in 2016. I could not do anything. I am no longer with school, but continued to keep tab on YES Bank affairs, I shared a news clip with one staff member in Jan 2020, and don’t whether it was that effect, they withdrew all their money including salary account from YES Bank in January. Like balaji, I can take credit for saving the school.
Why not? But don’t be arrogant
😂😂😂😂. Legit