MAPUSA: Chaos and demands for resignation marred the annual general meeting of the Mapusa Urban Coop Bank of Goa Ltd on Friday, as shareholders grilled the management on issues of bank's merger and conversion to credit society.
Throughout the meeting, the shareholders heckled the bank's chairman, Gurudas Natekar and called for the resignation of the board of directors.
Former chairman and director, Ramakant Khalap intervened thrice to calm the tensed situation, but the shareholders appeared in no mood to listen.
"You know and we all know why this (the RBI action) has happened. Please resign as the board of directors to save the bank," said Kiran Shirodkar.
Many agitated members said the only way to save the bank from sliding further was for the directors to quit and allow a new team to take over.
"People are asking for your resignations. What is it that keeps you all sticking to the posts," asked Sandesh Naik, another shareholder.
The agitated shareholders refused the bank chairman from moving to the next point of the agenda calling for the resignation of the directors.
Many even taunted and targeted former chairman, Ramakant Khalap as three members of the Khalap's family are directors in the bank.
"From one family, three members have become directors of the bank. Was it necessary? In the interest of the bank, people in power should not look at individual benefits and take appropriate decision," said Ryan Braganza.
Sensing the mood of the members, director, Ramakant Khalap intervened and said if the board's resignation will help to improve the bank's condition, then the board was more than willing to do it.
"If we going out will help the bank to improve, we will be the first to move out," he said.
He further said the BoD had given the shareholders a timeframe of seven days to bring a resolution before the AGM.
"You could have moved a resolution to dissolve the BoDs in the AGM. Why didn't your'll do it," he asked.
Challenging the issue on converting the bank into a credit society, Rajsingh Rane questioned the chairman for failing to incorporate his objection against the move in the minutes of the last AGM.
"You have sent a letter to RBI that the AGM has resolved to convert the bank into a credit society before the minutes were even confirmed. How and why was this done," he questioned.
Intervening in the discussion, Shashikant Kandolkar said if indeed the letter has been sent to RBI, it should be immediately withdrawn.
"We all want Mapusa Urban Coop Bank to remain as a bank, as credit society appears to be a lowering the standard of the bank," Kandolkar said.
Pradeep Shirodkar said he wanted the bank to move forward and not backward by converting into a society.
Director, Ramakant Khalap assured the shareholders that whatever decision has to be taken it will done with the permission of the general body.
He said even if a resolution to convert into a credit society is passed, it has to have sanction of the RBI.
"We were first registered under multi-state cooperative society and later we got banking licence from the RBI," he said. "Let's not get excited. Don't get carried away. Don't get misled. Let's all work together to bring the bank out of the precarious condition," he added.
Agitated with Khalap's clarification, the shareholders blamed him for the current state of affairs and called for the resignation of the entire board.
In the end, chairman, Gurudas Natekar abruptly ended the AGM when Rajsingh Rane insisted on passing a resolution demanding for BoD's resignation.
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Govt must take steps in interest
of coop banking sector: Khalap
MAPUSA: Former chairman and director of the Mapusa Urban Coop Bank of Goa Ltd, Ramakant Khalap on Friday said the banking sector in the country was undergoing severe stress and urged the Goa government to take steps to protect the interest of cooperative banking sector in the State.
"The non-performing assets (NPA) issue is hampering all banks, including the nationalized banks in the country. The central government is pumping more than Rs 1 lakh crore into the nationalized banks to tide over the financial crisis in the banking sector," said Khalap, who was former union law minister at the Centre.
He said Mapusa Urban Coop Bank was not the only bank in the cooperative sector that was going through difficult times.
"Madgaum Urban Coop Bank, Goa State Coop Bank and Goa Urban Coop Bank were also facing financial stress and the Goa Cooperative Society must come out with some package to tide over the problems facing the cooperative banks," he said.
He said he welcomed the strong reaction of the shareholders at the AGM and assured that the management would not take any decision without taking the members into confidence.
"The key decision that we have taken at the AGM today was to appeal to the RBI to remove the restrictions placed on the bank in the interest of the shareholders, depositors and the staff of the bank," Khalap said.
