There is a shortage of cooperative entities with financial background strong enough to take over the beleaguered Rupee Bank’s losses amounting to a whopping Rs 1400 crore. Financial Express reports the Maharashtra government is considering approaching nationalized banks for a possible merger.
Earlier, Subhash Deshmukh, state minister for cooperation held a review meet with the board of administrators of the bank in Pune. He said that the government will try to merge the bank with a nationalised bank since no cooperative bank is willing to come forward.
Earlier, according to media reports Punekar Nagrik Kruti Samiti has made public a list of 100 alleged defaulters of the Rupee Bank. The Samiti says the beleaguered bank currently under the control of an administrator has been waiving off interest on loans running into crores. All these loans had been given to powerful politicians, the Samiti claimed.
One of the beneficiaries of the bank’s generosity is the Dhariwal Group of Companies, Asian Age quoted Samiti. Dhariwal group, which owns the ‘Manikchand’ brand, had been given an interest waiver worth Rs 5 crore while a builder received a Rs 3-crore interest waiver, source added.
Justifying the act the cooperative commissioner said the waivers could have been carried out per the existing guidelines. “If the loan is huge, waiving off Rs 3 or 5 crore is acceptable,” he said.
The cooperative department had fixed the responsibility of recovering Rs 1,490 crore from the 34 then-directors of the bank and 40 bank officials for running the bank into losses.
The names of several banks such as Allahabad Bank, Corporation Bank and even Saraswat Bank for merger with Rupee Bank have cropped up in the past but to little avail.
All defaulters are “chor”shame in these Indians,Gutkaking se aur kya ummid kar sakate hai,
RBI must protect 100% of the deposits of genuine depositors who are not the cause for the debacle in respect of any financial institutions.They should not be Punished by making them accept a lower amount but instead Punish the management n the borrowers who are defaulters. This is because the prime objective of RBI is to protect the citizens of this country as stated in their own Website.They must devise a policy thus as it is the only way to protect them.Its always the hapless depositors who suffers and both Management and Borrowers escape when the financial institution fails.This is injustice n RBI must devise a policy to protect the depositors always and in all the ways.
Reserve Bank of India as per its objective stated in their website must protect 100% of every genuine citizens deposits whenever any of its approved financial institutions.There should be no loss to any citizens who are not the cause for the debacle of such financial institution.
Whenever any financial institutions faces the crisis due to the bad management and defaulting borrowers,it is observed that always the hapless depositors get punished for NO FAULT of theirs instead of Management (All Directors) and defaulting borrowers.In fact it is seen that the borrowers get reprieve/waiver in their interest due to the institution and the Directors personal assets does not get attached and they go Scot free.This is nothing but INJUSTICE meted out to the hapless depositors who are in fact the backbone of the institutions as they deposit their hard earned money and they have NO SAY in the matter at all.