the goan I network
MAPUSA
Maintaining that the cooperative sector was under tremendous stress, former chairman and present director of Mapusa Urban and Cooperative Bank (MUCB) Ramakant Khalap said the only way out from the financial morass was capital infusion.
“The non-performing assets (NPA) have shot through the roof. Several cooperative banks are bleeding because of the growing NPAs. The only way to survive from this crisis is to infuse share capital in the system,” Khalap said.
The former chairman was addressing a news conference along with present Chairman Gurudas Natekar and director Babuso Hadfadkar in the bank premises on Thursday.
Incidentally, the annual general meeting of MUCB
will be held on September 29 at 4 pm.
Giving a comparison of figures, Khalap said the NPAs of MUCB was much less than those of other cooperative banks in the State.
“Gross NPAs of MUCB is Rs 30 crore, well below the gross NPAs of Goa State Coop Bank (Rs 114 crore), Goa Urban Coop Bank (Rs 109 crore) and Margao Urban Coop Bank (Rs 62 crore),” he said.
Similarly, the net NPAs of MUCB was Rs 10 crore, also lower in comparison to net NPAs of Goa State Coop Bank (Rs 69 crore), Goa Urban Coop Bank (Rs 29 crore) and Margao Urban Coop Bank (Rs 19 crore), he added.
The former chairman said the RBI embargo on MUCB has crippled the functioning of the bank and it couldn’t garner any revenue for
the last three years due to stiff regulations of the central bank.
He said when the bank’s Board of Directors got a hint that the government wanted them to quit they volunteered to quit and even held discussion with officials and government, but nobody paid attention to them.
“The whole board has unanimously resigned but somehow our resignations are yet to be accepted,”
Khalap said.
Suggesting a five-pronged approach to save the current crisis in the bank, he said shareholders of the bank can themselves contribute towards share capital, the depositors can contribute 10 percent of the deposit into share capital which could be redeemed within five to 10 years, the bank employees can partly contribute their earnings toward share capital, capital infusion by the Government of Goa and capital infusion by the Government of India.
Stating that none of family members or his directors was involved in any wrong doing, the former chairman said that he and the board was open to any investigations.
