the goan I network
Panaji
Though the bank has accumulated losses of Rs 67.83 crore for year ended March 2016, it has earned profits of Rs 3 crore for the first quarter of financial year 2017-18.
Nonetheless, the management is of the opinion that management expenses should be reduced by way of Voluntary Retirement Scheme (VRS) to at least 125 staff, which is expected to save at least Rs 7-8 crores a year.
The bank, however, is in the process of merging five of its loss-making branches into the profit making ones.
Addressing a press conference at Sahakar Sankul, Panaji, GSCB Chairman Ulhas Phal Dessai said, "For rejuvenation of the bank, we have suggested a roadmap to the state government which includes appointment of Board with professionals and managing director as per fit and proper criteria of RBI and infusion of share capital by the state government. Additionally, action has already been initiated for merging five branches into the profit making ones."
GUCB management has however suggested reduction in management cost and reduction in NPAs to below 5% by FY 2017-18.
"With the present actions initiated for recovery under SARFAESI Act through district courts and Mining Debt relief Scheme, the estimated reversals in provisions and interest income will be around Rs 22 crore as on March 31, 2018 thereby reducing losses to that extent", said Phal Dessai.
He also informed that with the term of the present Board of Directors coming to an end on August 29, all directors are ready to resign in the interest of the bank. Already, four of the 16 directors have resigned.
The bank, despite adverse recovery conditions, has reduced NPAs to 5.28% in 2017 from 5.39% in 2012.
Management expenses should be reduced by way of Voluntary Retirement Scheme (VRS) to at least 125 staff, which is expected to save at least Rs 7-8 crores a year
Appointment of Board with professionals and managing director as per fit and proper criteria of RBI and infusion of share capital by the state government
Additionally, action has already been initiated for merging five branches into the profit making ones
Reduction in management cost and reduction in NPAs to below 5% by FY 2017-18 (The bank, despite adverse recovery conditions, has reduced NPAs to 5.28% in 2017 from 5.39% in 2012)
