GSCB reject suggestion
to reduce its BoDs
The Goan Network
PANAJI
The special general body meeting convened by Goa State Co-Operative Bank has rejected registrar’s suggestion to reduce the size of its board of directors. This was confirmed by Ulhas Phal Dessai, chairman, Goa State Co-Operative Bank.
The ball is now totally in state government’s court to let GSCB continue to have 16 directors in its board or not. Since GSCB has rejected registrar’s suggestion, it cannot register its by-laws with the state registrar.
Without registering the by-laws, it cannot become the apex co-operative bank of the state, which means the state government cannot infuse Rs 35 crore of share capital in the bank, as mandated by the Reserve Bank of India.
GSCB desperately needs fresh infusion of capital, as it is saddled with accumulated losses to the tune of Rs 53 crore as on March 31, 2016.
However, if the state government so wishes, it can allow GSCB to get its by-laws registered with the registrar while still having its 16 directors. Sources revealed that the registrar had earlier written to the state government recommending that GSCB should reduce the size of its board to 11 directors.
This issue started when it was decided to bifurcate GSCB’s Daman and Diu branches into a separate co-operative bank as a result of which GSCB would lose its multi-state status and will have to register itself with state registrar to become the apex co-operative bank of the state.
