The rot in the Maharashtra State Cooperative bank is deeper than it looked. The confidential NABARD report submitted to state government for sacking the Board of MSCB was leaked leading to cash withdrawal by some banks controlled by NCP.
Such withdrawal indeed calls for investigations as it would seem that anybody who is powerful can have his way with the government confidential documents.
Rushed withdrawal also leads to scramble among depositors leading to fund crisis which is easily avoidable. MSCB is comfortable so far as fund situation is concerned.
It has a huge deposit of Rs 27,000 crores. The newly appointed administrator is convincing people repeatedly not to get nervous. The bank has not only government backing but even NABARD is there to bail it out should situation warrant.
But NCP’s “smart act” has raised many eyebrows. Its five banks have withdrawn nearly Rs 3000 crores. The banks include Pune District Cooperative banks and four more District cooperative banks.