The bank invited the depositors to assemble at the auditorium at 6 p.m. on Monday to update them on the bank's status, following a Reserve Bank of India (RBI) directive restricting the bank from doing business with immediate effect.
"The bank is telling that I cannot withdraw more than Rs 35,000. In case our fixed deposit matures, we have to renew it as we cannot encash it," said Nagaraj M (49), an account holder with the bank for the past six years.
At the auditorium in Basavanagudi, near the Ramakrishna Ashram on Bull Road, thousands of depositors demanded the bank's chairman to appear and explain the situation.
Pandemonium ruled the gathering, as no senior employee of the bank was present to assuage and assure the customers.
"We want the directors of the bank here," shouted a depositor from the stage, addressing fellow depositors.
A handful of policemen were trying to control the crowd and bring order to the assembly.
Many old people and retired employees arrived at the gathering to know the fate of their savings.
"Sri Guru Raghavendra Sahakara Bank was a good bank with only 0.5 per cent non-performing assets. Nowadays we cannot trust any bank. See what happened with the PMC Bank," lamented another customer.
( With inputs from IANS )