Pune based Rupee Cooperative Bank has got a reprieve for the ninth time since placed on RBI’s direction. The three month extension has come amid fears of the bank being recommended for liquidation by the apex court.
The administrative board of beleaguered Rupee Bank under the Chairmanship of Sudhir Pandit is, meanwhile, making an all-out effort to find a suitor. It got an extension for six months in February and now this three months extension which was granted by RBI.
Sources say in three months time the bank could make itself fit for merger with other banks as there have been no suitors coming forward.
The bank’s current administrators say the bank’s revival rides on a liquidity infusion of Rs 600 crore.
The UCB had registered a profit of Rs 55 lakh in the last 6 months, reversing the 8-year trend last year. The recovery has also been on the rise with a figure of Rs 125 cr for the current fiscal.
The tie-up efforts are still going on with several suitors which include PSU banks and others, informed Mr Pandit. Sudhir Pandit, one of the Directors of Janata Sahkari Bank of Pune and an erstwhile member of the Board headed by Mukund Abhaynakar had taken over as the new Chairman of the reconstituted Board of ailing Rupee Bank in April 2016.
The other members of the board include Arvind Khaladkar, Vijay Bhave and Sadanand Joshi.
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.
More than half of its employees have left under the voluntary retirement scheme and the bank has seen three set of administrators appointed by the government.
This seems to be the last opportunity for the bank.
However, it is unlikely to be of any use. The bank cannot make itself fit for acquisition unless the illegal benami loans taken by the promoters using their relatives are closed.
This is unlikely to happen.
Another point worth pondering is none of the newspapers except for Times of India reported on this event. Does this mean that the media has lost interest?