In the wake of several shareholders getting restive on account of not getting dividends for the last two years, the country’s second leading urban cooperative bank Cosmos Bank has assured them that they would be getting the dividend without delay.
Talking to Indian Cooperative Cosmos Bank’s Chairman Milind Kale said” RBI inspection is over and we hope to disburse the dividend in next 10-15 days.” Kale was responding to a question on the delay in disbursing the dividend, after several shareholders told Indian Cooperative their tale of woe.
Ramesh from Nashik (name changed to protect identity) earlier alleged that the Cosmos Bank announced a 10 per cent dividend on 22nd February in 2017 but has yet to pay the same. “Whenever I call them they say that the matter is pending with RBI; can it be pending with RBI for past 16-17 months, I have my doubts”, said a distraught Ramesh.
“The Bank says that it has the capacity to pay without touching the Reserve but has not done so owing more than Rs 2.6 lac to me and the same is true of all other shareholders”, Ramesh said while stressing that he has been connected with the Cosmos Bank for the past 15 years and has had never issues with the UCB in the past. The Bank scams such as PNB’s have made us jittery, he conceded.
Allaying the fear of the likes of Ramesh, Cosmos Bank Chairman CA Milind Kale said the UCB operates under strict norms set by RBI and unless the regulator audits its financial report and okays it the bank is helpless. Kale also added that according to the RBI directives even the Dividend cannot be announced in AGM but we did so after seeking special permission.
“But things have worked out on expected lines, the RBI inspection was conducted a fortnight ago and discussions about releasing the dividend also took place. Hopefully, by the next fortnight we would be clearing all the dues”, said Kale.
Kale also stressed that dividends are pending only since March 2017.
It bears recall that the Cosmos Co-operative Bank is the second largest UCB after Saraswat Bank with a set-up of more than Rs 25000 crore. It has 140 branches across 7 states with more than 20 lakh customers.
After the telephonic conversation with Chairman Milind Kale he was prompt enough to send this mail allaying fears of shareholders. We reproduce the same verbatim- Editor
This has reference to your telephonic conversation and SMS with our Chairman Mr. Milind Kale. We wish to provide you with the following facts-
- The dividend for the F Y 2014-15 was declared and paid to the eligible share -holders on 26.09.2015 (the general body meeting of the Bank was also held on 26.09.2015 itself)
- The dividend for the F Y 2015-16 was paid to the eligible share-holders on 22.02.2017, after receiving RBI permission.(the general body meeting of the Bank was held on 29.09.2016)
- The general body meeting of the Bank for FY 2016-17 was held on 24.09.2017. The dividend for the F Y 2016-17 is yet to be paid as final approval for declaration/distribution of dividend from RBI is awaited. RBI has informed the Bank that permission for dividend for FY 2016-17 will be considered after the Inspection of the Bank w.r.t. its position as on March 31, 2017.
- The RBI Inspection of the Bank as on March 31, 2017 is concluded in February 2018 and the RBI Inspection Report is received by the Bank in the last week of March 2018.
The Bank is following up with RBI for its final approval for declaration/distribution of dividend for the F Y 2016-17.
This is for your kind information.
Thanks & regards,
The Cosmos Co-op. Bank Ltd
Cosmos Tower, Plot no.6, ICS Colony,
Ganeshkhind, Pune 411007