the goan I network
MAPUSA
The Mapusa Urban Co-op Bank Ltd (MUCB) was just one step from losing its identity after the bank’s general body on Saturday unanimously decided to merge with Punjab and Maharashtra Cooperative Bank (PMC) or two other banks.
The two other banks where the merger options have been kept open if talks with PMC fail are Thane Janata Sahakari Bank (TJSB) and Dombivli Nagari Sahakari Bank (DNS).
The general body also decided that future merger talks with any of the banks should include three members each of depositors, shareholders, staff union and the management of the MUCB.
“It is resolved to merge The Mapusa Urban Co-op Bank Ltd (MUCB) either with PMC or TJSB or DNS banks and any talks over merger may include three members each of depositors, shareholders, staff union and the management of the MUCB,” said Shailendra Sawant, while reading the resolution at the special general body meeting.
The resolution was proposed by Ravindra Fogueri and seconded by Eknath Mapsekar.
Besides Chairman of MUCB, Gurudas Natekar, directors, Ramakant Khalap, Tulio de Souza, Michael Carrasco,
Pradhnya Naik, Ashwin Khalap, Babuso Adfadkar, Mangaldas Naik, Nirmala Khalap and Shambu Bhau Bandekar were present for the special general body meeting.
Earlier while initiating the discussion on the merger resolution, Chairman of MUCB, Gurudas Natekar informed the general body that the management had met Chief Minister Pramod Sawant and Cooperative Minister Govind Gaude and discussed with them the prospects of saving the interest of the depositors and the staff.
“We have gathered here to resolve the merger of Mapusa Urban Coop Bank with the PMC bank as directed by the chief minister and the cooperative minister. We have also postponed the election of new BoDs,” Natekar said.
On the request of one of the shareholders, the General Manager informed the general body that PMC Bank had evaluated the acquisition cost of MUCB at Rs 74 crore, which excluded the staff cost pegged at Rs 90 crore.
“PMC is ready to bear only Rs 30 crore staff cost while the MUCB staff union insisted that at least legal dues of around Rs 50 crore has to be paid to settle the staff cost,” Sawant said.
He further said that PMC was not ready to absorb the MUCB staff and insisted that the entire staff will have to opt for VRS (voluntary retirement scheme) if the merger went through.
“The PMC bank, however, agreed to take care of the investment of depositors and pay 100 percent to them with interest,” the GM disclosed.
A shareholder, Shashikant Kandolkar, requested the management to take into confidence the lease holders who had offered their premises to MUCB.
Rajsingh Rane, Kiran Shirodkar, Paresh Raikar and several others also spoke during the discussion.
Incidentally, Chief Minister Pramod Sawant had recently taken the initiative to felicitate the merger of MUCB with TMC Bank.
The Chief Secretary, Regional Manager of RBI, Registrar of Cooperatives, MUCB management and staff union, PMC bank officials and others were present at the meeting held at the CM’s residence held on September 9.
It may be recalled the MUCB’s finances came under strain after RBI imposed certain curbs on the its financial transactions in 2014.
In its latest order issued on August 18, the Apex bank has extended the curbs on the bank for another three months which ends on November 18.
MUCB has 24 branches in the State besides the head office in Mapusa and 193 staff members in all. Besides, the bank has 1.19 lakh shareholders and 2.48 lakh depositors.
