Amannath Cooperative Bank seems too woebegone to get rid of its stubborn problems. The latest news is the Canara Bank says it would not take over the beleaguered bank as planned earlier citing the lack of any good economic sense in the deal.
The former has already approached the Karnataka High Court seeking permission to withdraw from its decision. However, the court has asked the chairman of the Canara Bank to be in the court during the next hearing.
The Canara Bank’s abrupt volte face has shocked the banking circles. ” This will only further pare the crisis-ridden bank’s ability to get out of its misery down”, a cooperative source is quoted as saying.
The Canara bank says if it combined with the UCB , it would straightaway incur a whopping loss of 32 percent and not 18 percent as estimated by experts earlier. The RBI has weighed in on the issue supporting the Canara Bank’s stand.
