MARGAO
Claims made by the Madgaum Urban Cooperative Bank (MUCB) that 99 per cent of the total 56,000-odd depositors, with deposits below the Rs five lakh ceiling need not worry on the return of their hard earned money, may ring in good news for the beleaguered small time depositors.
Indeed, the claim may paint a picture that all may be well for the depositors. But, what about the balance one percent of the depositors, which roughly works out round 560-600? How would the bank clear their deposits and whether there will be adequate liquid cash available to settle their claims?
Take note, this balance one percent of the depositors may be a miniscule number, but inquires have revealed that these 560-600 depositors form a major chunk of bank depositors in terms of deposits.
Inquiries have revealed that this one per cent of the depositors may have total deposits with the bank amounting to a whopping around Rs 59-60 crore.
This implies, of the total deposits pegged at around Rs 199.76 crore as on March 31, 2020, deposits to the tune of Rs 59-60 crore belong to the miniscule one percent of depositors, whose deposits exceed the Rs five lakh ceiling.
Assuming that the Bank or the liquidator draw up plans to clear the 99 per cent of the depositors first out of the liquid cash, pegged around Rs 123 crore, as informed by the MUCB Managing Director Kishore Amonkar, the question that remains unanswered is how is the bank going to settle the claims of the balance one per cent depositors.
Amonkar informed that the bank has investments to the tune of Rs 25-30 crore, which will help the bank or the liquidator to settle the claims. Sources, however, say claims on investments are on paper, as the ground reality will determine the value of the investments, particularly the assets.
In times of Covid-19 pandemic when the real estate sector is passing through a bad phase, questions are being raised how much funds can be generated through the disposal of bank assets and other investments.
Sources say the one per cent of the depositors consists of individuals, having placed their hard earned money with the bank over the years. However, there may be institutions such as the Curtorim Comunidade, which has deposits with the MUCB pegged around Rs one crore.
Says Curtorim Communidade Attorney Simon Barretto: “The Comunidade office bearers have found out that the body has total deposits pegged around Rs one crore with the Madgaum Urban Cooperative Bank. The Comunidade had deposited the money with the MUCB since it had a branch in Curtorim.
The revenue earned by the Comunidade from leasing of land for crushers, quarrying were all deposited in the MUCB”.
Like many a depositor, the Curtorim Comunidade Attorney made his presence at the Curtorim branch of the MUCB on Friday to find out the status of its deposits, but was only told by the Bank officials that the banking license stands revoked and that the affairs of the bank will be managed by the government-appointed liquidator.
