Following RBI striking down the merger proposal of the Rupee Cooperative Bank with the Maharashtra State Cooperative Bank, the bank’s administrator Sudhir Pandit called on Union Finance Minister Nirmala Sitharaman urging her to resolve the matter without delay, reports Indian Express.
The Pune headquartered UCB was placed under Directions from the close of business on February 22, 2013. The validity of the directions was extended from time-to-time. It is learnt that it was Nabard which advised the RBI against this merger.
According to Pandit, the bank is taking all possible steps to improve its financial situation including attachment of properties of defaulters and filing criminal cases against defaulters and their guarantors. He said the bank has been earning operating profit for the last five years.
Unfazed by the RBI dismissal of the proposal, Pandit is hopeful of finding yet another bank with which the Rupee Bank could be merged. He has petitioned the FM for her support, media report says.
There are more than 6 lakh depositors associated with the Rupee Bank, who continue to suffer. The recent amendment in the DICGC Act, when passed would help the small depositors but the institutional depositors would continue to suffer unless the bank is reborn either as SFB or as a merged entity.