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Goa: Mapusa Urban bank seeks additional time from RBI

Panaji: With the Reserve Bank of India’s November 18 deadline fast approaching, The Mapusa Urban Cooperative Bank Ltd (MUCB) is running out of time and options, as the bank frantically seeks a way out of its dire financial situation. The multi-state cooperative bank is in talks for a merger with at least two cooperative banks but has simultaneously sought more time from RBI , said officials.



Presently, MUCB is in talks with Thane Janata Sahakari Bank and Saraswat Cooperative Bank for a merger. Discussions with Saraswat Bank are likely to bear fruit, bank officials said.

“The bank has written to RBI that Saraswat Bank is interested in a merger. Therefore we have asked to give us some time. Otherwise we have just eight days,” said MUCB chairman Gurudas Natekar.

Natekar said that MUCB’s officials were following up with Saraswat Co-operative Bank on a daily basis. “The due diligence and valuation report which was done earlier has been shared with Saraswat Bank. They will discuss it with their board and get back to us in a day or two,” said Natekar. He also said that currently, talks with TJSB had slowed down.

RBI had imposed financial restrictions on MUCB in July 2015, which have been periodically extended for three months, the last extension being granted on August 18. The curbs prohibited the multi-state cooperative bank from lending, taking on more liabilities or selling assets, after the latter’s cash reserve ratio turned negative.

Director with the bankRamakant Khalap said that the bank wants RBI to grant more time so that ongoing discussions can be completed. “The management has conveyed to RBI about the current stage of discussions and have sought additional time from RBI to crystalise the solutions,” Khalap said.

Meanwhile, Natekar rued that despite being on the path of improvement, MUCB was not able to chart its revival. “If RBI had allowed us to function, to lend, then our state would have been better. We have surplus money,” he said.

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