Madhavpura Mercantile Bank in Gujarat is yet again in trouble. The Reserve Bank of India issued a notice to the bank threatening to cancel its license as it has not done enough to recover dues adding up to more than a thousand crore.
The RBI is not happy about the way the present management of the bank is handling things. The dues have accumulated and they need to be recovered immediately.
The RBI has asked the bank to improve its performance inside of a month or face the music.
The bank owes more than 60 crore to the cooperative banks and about 100 crore to individual depositors.
Knowledgeable sources say,as the MMCB is most likely to go into liquidation scores of banks in the state would be seriously affected by it.
The MMCB officials stalled when asked to react to the notice issued to their bank by the RBI.
