The RBI has given Rupee Cooperative Bank in Pune a reprieve. Now the bank could merge itself with some other bank till August instead of before February 2014.
The apex bank has extended the deadline in order to allow other banks to arrange things before going ahead with merger. The rupee bank remains in peril as it would be liquidated if it failed to combine with some other bank on time.
Sources say Saraswat Bank has indicated intention about taking over the ailing rupee bank and begun inquiring into its financial background. It is awaiting the inquiry report before announcing its final decision in the matter, said sources.
It is worth mentioning that Rupee Bank has a customer base of over six lakh and a network of 36 branches. Its deposits stand at Rs 1,425.5 crore and loan disbursement at Rs 628.5 crore.
However, the bank’s non-performing assets till this date were worth Rs 357.06 crore and its accumulated loss was worth Rs 570.15 crore.