the goan I network
MAPUSA
Minister for Corporation Govind Gaude on Saturday hinted that government could take the cooperative society route to salvage the prospects of the Mapusa Urban Cooperative Bank (MUCB).
He said the government has received a proposal from the management of the bank which was being examined by the chief minister.
“For the moment, the government is not in a position to infuse capital in the bank. If it is possible for us to form corporation we are just trying for that…but there is a lot of financial implication involved…,” Gaude said.
“Nothing has been decided yet. We are trying from all angles. On merger issue all doors have almost been closed. We are just finding out ways…We have to save the bank…We have to take care of the shareholders and the depositors,” he added.
The cooperative minister informed that the chief minister has been regularly holding talks with financial experts and key people from the bank’s management.
He refused to go into the details of the proposal received from the bank’s side but said MUCB had enough assets that could take care of the depositors and the shareholders.
“The best part is that Mapusa Urban Bank has assets. If we invest in it we are not going to lose anything. This is one way… They have 2,800 square meters of land in prime area of the city. If something goes wrong, the depositors are safe…,” the cooperative minister said.
The Chairman of MUCB, Gurudas Natekar refused to share much information on next plans but admitted that some talks were being held with the chief minister.
Sources informed that former director and former chairman, Ramakant Khalap has placed the proposal before the chief minister.
It may be recalled MUCB’s bid to merge with Punjab and Maharashtra Coop Bank (PMC) came to naught after RBI discovered PMC flouting certain banking provisions and imposed sanctions on the bank in mid-September last year.
The bank’s effort to merge with three other out-station banks had also failed.
The MUCB has to take a final decision before the Reserve Bank of India embargo deadline ends on February 18, 2020.
