Pune based Rupee cooperative bank may have found a suitor in the largest urban cooperative bank of India Saraswat Bank. Though Eknath Thakur the Chairman of the Saraswat Bank failed to answer calls, daily news paper DNA has quoted RBI source in which it has been said that Saraswat Bank’s board has cleared proposal to take-over Rupee Bank.
Recently the Reserve Bank of India has extended the validity period of directions imposed on Rupee Co-operative Bank for six months from August 22, 2013 to February 21, 2014.
Rupee cooperative bank granted term loans to some borrowers much in excess of the limit of Rs ten lakh. The bank was also guilty of sanctioning fresh Cash Credit limit to the existing borrowers in excess of Rs ten lakh in 4 cases, in violation of the operational instructions.
Expressing general disenchantment with the bank one of our readers Nitin Modak commented:
“The fine imposed should be collected from the Directors who have sanctioned this loan to the borrowers. Property of the Directors should be confiscated and sold to recover the losses incurrred till date and fine imposed.
As on date Rupee bank Ac. holders are suffering due to these corrupt Directors. Stern legal including Criminal cases should be filed and these Directors should be sent to jail. A strong agitation by the Share holders and account holders need to be launched.
For no fault genuine investors and account holders are suffering. As an account holder my entire business has come to stand still.
RBI before issuing such Hitler type orders should have thought of the pains the account holders are going to face. Thanks to them for the deadly decision”.
It is being said that RBI is inclined to grant green signal for the merger and the entire process may take not more than 2-3 months to wind up.