The prospect of resolution of the issue of the Rupee Co-operative Bank continues to be elusive with the Reserve Bank of India yet again extending its Direction for another three months.
Once pride of UCBs and based in Pune, its depositors numbering in lakhs continue to face uncertain future so far as the resolution or take-over of the Bank by MSCB or others is concerned.
In a press release issued on Tuesday, RBI noted “ It is hereby notified for the information of the public that, the Reserve Bank of India, in exercise of powers vested in it under Sub-section (1) of Section 35 A of the Banking Regulation Act, 1949 read with Section 56 of the said Act, hereby directs that the aforesaid Directive shall continue to apply to the bank(Rupee Cooperative Bank) till November 30, 2020 subject to review, vide directive DOR.AID/D-15/12.22.218/2020-21 dated August 25, 2020.”
It bears recall that the Rupee Co-operative Bank Ltd., Pune was put under Directions from the close of business on February 22, 2013. The validity of the directions was extended from time-to-time, the last being up to August 31, 2020.
The last we heard on the issue was from Vidyadhar Anaskar, Chairman of MSCB’s administrative board, who said he is still awaiting a response from the RBI on the proposal for merger of Rupee Bank with the Maharashtra State Cooperative Bank MSCB.
The extension granted on Tuesday means the matter has not headed in any concrete direction. While Anaskar says it’s better to ask RBI than me regarding the merger proposal sent by MSCB, RBI sources maintain silence on the issue.
Even the state govt willingness to resolve the issue has borne no fruit so far. Maharashtra govt along with the management of MSCB had approached the RBI for considering a proposal of merger. On the behest of RBI, MSCB has also submitted its financial details till March 31, sources add.
Meanwhile beating all odds Rupee Co-operative Bank earned an operating profit of Rs 19.55 crore in FY20. Sizeable reduction in staff strength, as well as the curtailing of administrative expenses, are said to have helped the debt-ridden Rupee Cooperative Bank to report a profit.
The bank has made a total recovery of Rs 15.40 Crores. The bank has total deposits of Rs 1,289.72 crore and loans to the tune of Rs 298.50 crore, with around 5 lakh depositors and 35 branches.
In the notification released Tuesday, RBI says all other terms and conditions of the Directives under reference shall remain unchanged.