the goan I network
MAPUSA
After earlier merger attempts failed, the beleaguered Mapusa Urban Cooperative Bank (MUCB) appears to have now struck a purple patch with the Saraswat Bank showing interest to discuss merger plans with it.
The development will give the Mapusa bank a much needed breather as the Reserve Bank of India embargo on the bank ends on November 18.
Chairman of MUCB Gurudas Natekar has informed that Saraswat Cooperative Bank Ltd has expressed in writing its desire to explore the merger proposal with the bank. “We met the chairman of the Saraswat Bank a couple of days ago in Mumbai and had a fruitful discussion with him. He has perused through our balance sheet and expressed his willingness to take forward the merger plan,” Natekar said.
He said the Mumbai-based bank has in-principle agreed to the merger proposal and will now hold their board meeting and accordingly take future action of conducting due diligence. The MUCB chairman further said that the Saraswat Bank’s letter of intent has been forwarded to the RBI and he hoped the apex bank will take an appropriate decision on November 18. The Mumbai-based Saraswat Bank has offices in Maharashtra, Karnataka, Gujarat, Delhi, Madhya Pradesh and even in Goa.
Earlier, all efforts to merge MUCB with Punjab and Maharashtra Coop Bank (PMC) came to a naught after RBI discovered PMC flouting certain banking provisions and imposed sanctions on the bank in mid-September. MUCB was also exploring the idea of holding merger talks with Thane Janata Sahakari Bank (TJSB) but for some reason the talks did not move forward.
It may be recalled on August 18 the RBI had extended the ongoing embargo on MUCB for another three months which ends on November 18. The apex bank had first imposed certain curbs on the financial transactions of MUCB on July 24, 2015 which was later reviewed time to time after a period of every six months.
Under the Section 35A of the Banking Regulation Act, 1949, the apex bank has directed MUCB not to grant or renew any loans and advances, make any investment or accept fresh deposits without prior approval of the RBI.
