MARGAO
After its previous attempts for the bank’s merger coming a cropper, will the Madgaum Urban Cooperative Bank (MUCB’s) proposal to the Union Finance Ministry to merge the bank with the Goa State Cooperative bank find acceptance with the Reserve Bank of India (RBI)?
MUCB Chairman Kishore Narvekar and Managing Director Kishore Amonkar said the bank had made the proposal to the Union Finance Ministry a month ago, saying the Union Minister of State for Finance, Anurag Thakur has forwarded the proposal to the RBI Mumbai branch to explore the possibility of the merger with the Goa State Cooperative Bank.
Since the proposal was made by MUCB over a month ago, the bank has only received a letter from the Union Finance Ministry that the proposal has been sent to the RBI Mumbai branch to study the matter.
“We are waiting for the RBI to discuss the proposal with the bank management. So far, the matter is at the stage of a proposal. Let us wait and see how the RBI responds to the Bank’s merger proposal with the Goa State Urban Cooperative Bank,” the duo said.
The Bank Chairman and the Managing Director, however, made it clear that the previous proposals to merge the bank with the PMC and TJSB have all come a cropper.
Amonkar pointed out that the MUCB has made the proposal to the RBI for the bank’s merger with the Goa State Cooperative Bank since the government cannot financially support the MUCB, unlike the Goa State Cooperative Bank.
“The MUCB’s financial position is not that bad as is made out to be. Though the total deposits are pegged around Rs 188 crore, the bank has liquid cash of Rs 125 crore, investments to the tune of Rs 109 crore, besides other assets,” he said.
Amonkar, however, said the bank cannot return the money of depositors since it has come under the restrictions imposed by the RBI. “The bank’s control lies in the hands of the RBI. We cannot take decisions and rely on RBI’s circulars and orders,” he added.
