PANJIM: As expected, the annual general body meeting of the Mapusa Urban Cooperative Bank (MUCB) unanimously resolved to seek merger with a larger bank, which may be interested in taking over. In all likelihood, it will be the Punjab and Maharashtra Cooperative Bank that will take over, as talks between the two banks have been held.
Speaking to Herald on the liabilities of the MUCB, bank director Ramakant Khalap said, “There are some carry-forward losses which are there and it has been estimated by the bank, which is likely to take over at about Rs 70 crore. However, our estimate is about Rs 40 crore.”
Now that the MUCB has decided to seek merger, the next step is that the proposal will be considered by the bank willing to takeover. “It was discussed with the Chief Minister where all stakeholders, including the Reserve Bank of India, were present. We will now go back to the Chief Minister and hand over our resolution and will request him to use his good offices to solve this issue,” Khalap added.
However, he added that there could be other proposals. “One could be that there may be the setting-up of a Corporation on the lines of the National Cooperative Development Corporation (NCDC) for the development of State cooperative banks. This Corporation can seek funds from NABARD, Government of India, State government, NCDC or by raising bonds, which can be utilised to stabilise the cooperative banks in Goa. Secondly, all local banks can be merged into one entity and the third is the merger and final will be the liquidation which no one would like to,” Khalap said.
