the goan I network
MARGAO
Amidst uncertainly over the very future of the bank ever since it came under the Reserve of Bank (RBI) scanner in May last, the annual general body meeting of the Madgaum Urban Co-operative Bank Ltd on Sunday gave its green signal to the MUCB Board to set in motion the process to merge the bank with the Thane Janata Sahakari Bank (TJSB), with the merger bid with the Punjab and Maharashtra Cooperative Bank coming a cropper.
Anxiety was writ large on the faces of the shareholders as the 47th general body meeting repeatedly saw beleaguered depositors demanding return of their deposits forthwith. While the meeting adopted a resolution tabled by Sriram Raiturkar in this respect to be forwarded to the RBI for necessary action, many a depositor were seen keeping their fingers crossed over the return of their hard earned money locked in the bank.
The meeting chaired by MUCB Chairman Kishore Narvekar tried to reassure the angry depositors that they would get access to their deposits once the merger process with the TJSB is complete. After many a shareholder raised fears that the bank would go into liquidation if the merger proposal comes a cropper, the Board tried to reassure the shareholders that they would secure the interest of the depositors by avoiding liquidation of the bank.
The board explained that the total assets of the Bank are pegged at 208 crore, including liquid cash around Rs 140 crore as on March 31.
Board of Director, Atul Verekar and Santa Cruz MLA
Tony Fernandes, a shareholder of the bank, explained the members on the meeting the
MUCB Board had with Minister for Cooperation Govind Gawde and Chief Minister Pramod Sawant on the question of taking forward the merger proposal with TJSB. Tony later told the media that they have called on the Chief Minister, who has offered his support for the merger proposal with TJSB bank.
The Board of Directors told shareholders that today’s resolution giving the go-ahead signal will be forwarded to TJSB immediately, adding that a special general body meeting will be convened next month if the merger proposal finds favour with TJSB. Shareholders, however, could not get any assurance from the Board members when exactly the Bank merger could take place, with Verlekar only saying it may take as many as 3-5 months.
In fact, the MUCB’s financial position, the merger proposal, return of depositors’ money and liquidation dominated the proceedings of the annual general body meeting chaired by Chairman Kishore Narvekar at the packed Gomantak Bhandari Samaj hall, Fatorda on Sunday morning.
As the planned merger of the bank with PMCB coming a cropper and the November 3 deadline set by the RBI for merger coming close, shareholders vent their anger and sentiments at the Board of Directors, with many demanding their resignation.
A former employee and shareholder Chandan Nayak tabled a resolution to order an inquiry by the Enforcement Directorate into the loans sanctioned by the Bank during the tenure of former Bank Chairman Ramakhant Angle. While the resolution was adopted unanimously by the general body, incumbent Bank Chairman Kishore Narvekar later told the media that the Board will first obtain legal opinion before initiating action.
The Board reassured the shareholders that they are trying to avoid liquidation of the bank, with Director Atul pointing out that even Chief Minister has promised to take the proposal with the TJSB management. ‘The MUCB had approached both TJSB and PMCB after the RBI imposed restrictions on the bank in May. Both the banks had carried out due diligence process. Since PMCB had expressed its intention to take over the bank, TJSB withdrew from the scene. Now, with PMCB is on the RBI radar, we have approached the TJSB bank for the merger”, Atul added.
