the goan I network
MAPUSA
The Mapusa Urban Cooperative Bank (MUCB) is hoping the Reserve Bank of India will extend the embargo for another six months to give it a cushion to arrive at a suitable decision even as it expects the State government to intervene in the interest of the bank.
The Apex Bank while extending the embargo last time had threatened to start liquidation proceedings against the bank if it failed to come up with a plan to shore up the finances of the bank.
MUCB General Manager Sailendra Sawant said the bank management has asked the government to intervene in the matter in the interest of the public.
“Nothing is in our hands now. We have asked the government to take appropriate steps to protect the interest of depositors and shareholders of the bank,” Sawant said.
“We have also asked the government to appoint an administrator to run the affairs of the bank,” he added.
Interestingly, the GM said that the process for election of a new board of directors was on and the election was scheduled for September 14.
The RBI embargo on the bank ends on August 18.
Sources informed The Goan that the Registrar of Cooperative Societies has requested the Apex Bank to extend the embargo by another six months.
“The State government is seized of the matter. The chief minister and all senior officials concerned are aware of the situation in the bank. We are positive the State government will find a way out,” the General Manager said.
In the meanwhile, MUCB continued to hold talks on the merger bid with the Punjab and Maharashtra Coop Bank Ltd (PMC).
“The PMC has completed all the necessary formalities over due diligence and valuation of the bank. They have submitted a list of requirements to us for the final takeover. We are still in talks with them on the issue,” Sawant
said.
A couple of days ago, Cooperative Minister, Govind Gaude had said if need be the State government would intervene to salvage the bank.
MUCB has 24 branches in the State besides a head office in Mapusa and 193 staff members in all.
Besides the bank has 1.19 lakh shareholders and 2.48 lakh depositors.
