PANAJI
The government-appointed committee of administrators led by V V Prabhu Verlekar, Shailesh Usgaocar and Mohandas Ramdas has been tasked with rescuing the bank from the bad shape that it is in and are likely to begin as early as Monday.
Speaking to media, on the sidelines of the annual general body meeting, where he had come as an ‘observer' ahead of taking charge, V V Prabhu Verlekar said that their priority will be to reduce the costs of the bank as well as to increase its income. "We came here today only to observe. Maybe we will take over on Monday," Verlekar told reporters.
On his list of priorities is reducing the workforce through a voluntary retirement scheme, as well as increasing the income of the banks through setting of targets for every level including the administrative level.
The administrators appointed by the government for a period of six months after Chief Minister Manohar Parrikar insisted that the current board of directors resign if the bank were to have any hope of restructuring itself.
NABARD, in its report of the State's Apex Cooperative bank had made adverse observations about the bank and its functioning.
Part of the reason for the bank being in bad shape was the closure of mining and the subsequent debt relief given to those affected by the closure, while the bank itself is yet to be reimbursed by the government to the tune of Rs 35 crore. The bank has also sought Rs 80 crore as share capital from the state government as part of the restructuring process.
The term of the current board of directors had expired in August this year, but they were asked to continue until the administrators could take over and the annual general body meeting was held.
