the goan I network
MAPUSA
In an attempt to resurrect the fortunes of the Mapusa Urban Cooperative Bank (MUCB), a group of shareholders urged the State government to take over the affairs by appointing an administrator to the Mapusa-based bank.
They also demanded that the merger bid with the Punjab and Maharashtra Coop Bank (PMC) should be pursued to the logical end.
“The government has to support the bank and the only way it can do this is by appointing an administrator to look after the functioning of the bank,” said Rajsingh Rane, who is a councilor in Mapusa Municipal Council.
Disclosing that the merger plans with PMC have hit a roadblock after initially making good progress, Rane blamed the present Board of Directors for the stalemate.
“We agree to merger plans as the last option but the talks can move ahead only if government takes over the bank. The present management does not appear serious in their action to salvage the bank,” he said.
He said there were reports that the present management wants to hold the bank election in September this year and want to make a back door entry by re-contesting the elections.
“The RBI embargo has come during the term of the present BoDs. This directors should take moral responsibility for the mess and refrain from contesting the bank election,” Rane said.
Shareholder Kamlakant Bhartu said the talks with PMC Bank took off on a good note and the shareholders and depositors saw a ray of hope over the merger bid.
Giving the sequence of the merger talks, he said in February 2019 the PMC Bank expressed its desire to take over MUCB.
“In the month of March they completed the due diligence and in May, PMC asked Mapusa Urban to reduce the cost of staff by 50 percent,” Bhartu said.
He disclosed the staff cost of MUCB came to around Rs 90 crore and the acquisition cost worked out to around Rs 80 crore.
Another shareholder, Paresh Raikar said money of depositors was blocked for the last three years due to the Apex bank embargo.
“Good people should come forward to contest the bank election and work to bring the bank out of the present financial crisis,” Raikar
said.
Rajsingh Rane called upon the government to conduct an inquiry over the functioning of the bank and hold those responsible accountable.
