Bank of Baroda (BoB) has decided to go for an asset takeover of Memon Cooperative Bank. In a statement, BoB has said that bank will take over selected assets and liabilities of the Mumbai based Memon Cooperative Bank which is dealing with several troubles at present.
BoB has already received the approval of the Central government and the Reserve Bank of India.However, for this purpose, the bank has to come across several other formalities. The appropriate authorities will also have to approve the takeover scheme.
In May, 2009, the banking regulator had suspended all operation of Memon Co-operative Bank.
Due to mismanagement the loss of the firm has gone up to extreme level and the regulators have alleged that there has been number of falsification of accounts.
Though the bank had shown a profit in its balance sheet for the years 2006, 2007 and 2009 but actually it was suffering with huge loss for the same period of time.