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| Vizag co-op bank plans to merge Ongole co-op bank |
| VDS Rama Raju / Chennai/ Visakhapatnam Aug 10, 2009, 00:14 IST |
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The Visakhapatnam Cooperative Bank (VCB) is planning to take over loss-making Ongole Cooperative Bank.
Speaking to Business Standard, VCB chairman Manam Anjaneyulu said the state government and the Reserve Bank of India were insisting that VCB should merge the loss-making bank with itself. “We are holding our annual general meeting in September where we will take a decision on merging OCB with us,” he added.
OCB has two branches and its current losses stand at over Rs 2 crore. The bank has deposits of over Rs 2 crore with the Charminar cooperative bank. Including interest, this amount is now Rs 4 crore and if VCB can manage to collect this with the help of the state government, the financial position of OCB would automatically improve, he said.
Last fiscal VCB took over loss-making Bobbili and Ramachandrapuram cooperative banks, which had five branches in Vizianagaram and East Godavari districts. “The financial position of both the banks has improved significantly after merging with VCB. We expect the Bobbili branches to start making profits from the next fiscal,” he said.
VCB, which operates 16 branches, is targeting Rs 1,000 crore business by the end of this fiscal. Its total business stands at Rs 878 crore of which deposits include Rs 518 crore and advances Rs 360 crore.
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