The ailing Rupee Bank continues to in trouble with all the efforts of the Administrative Board headed by CA Sudhir Pandit meeting dead walls. While RBI is hesitant in accepting its merger proposals, it does give it new lease of life by extending Directions from time to time.
Presently, RBI has given an extension to the Rupee Cooperative Bank till November this year, even as the Board of Administrators has given a fresh proposal for revival to the apex bank so that the interests of depositors could be protected.
In spite of a limited turnaround in the fortunes of the bank, the bank still has not been able to reduce its NPAs. Its efforts to rope in possible suitors who could take control of it have come a cropper.
Besides CA Sudhir Pandit, other members of the Board include Arvind Khaladkar, Vijay Bhave, Sadanand Joshi and Achyut Hirve.
Earlier, in June this year Maharashtra Chief Minister Devendra Fadnavis called all the stake holders to resolve the impasse. The meeting was attended by top officials of co-op department of Maharashtra, Executive Director of RBI,
representatives of TJSB Bank (eager to take over) and the Board of Administrators of Rupee Bank appointed by the govt.
Fadnavis urged all to resolve the issue as lakhs of depositors of Rupee Bank are clueless about the fate of their hard-earned savings. In particular, he requested RBI representative to facilitate the merger of the ailing bank with another cooperative bank, TJSB in the present case.
In a parallel development Bombay High Court has also asked the RBI to respond to various merger proposals received by the Rupee Bank and submitted to RBI in the past. The apex bank has been wavering to take a call on the matter and seeking time again and again.
The RBI directions were originally imposed from February 22, 2013 to August 21, 2013 and were extended on nine occasions so far.
Rupee Cooperative Bank has earned a profit of Rs 5.46 crore so far in 2018, compared to the Rs 16-crore in the last financial year. The bank has recovered Rs 42.80 crore and effected economy of its financial resources.
The bank has downsized its workforce as well as cut down on the administrative cost. It has carried out strong measures to recover dues from defaulters as well as its past directors and executives by attaching their properties. The tie-up efforts with other banks have however failed to fructify so far.
Rupee bank has about 6.2 lakh depositors. The RBI has placed restrictions on the bank since 2013 owing to its poor financial health. It has losses amounting to a whopping Rs 1400 crore.
The UCB has also put on its website the names of top defaulters, in a bid to name and shame. But to little avail, said a cooperator.
The wait for the next General elections followed by Maharashtra elections continues. The authorities are working hand in glove and making a show of giving extensions. They will declare bankruptcy once these two elections are over, and the depositors money will disappear.