Panel To Work Out Madhavpura Co-Op Bank Bail-Out Package

A high-power committee meeting has been convened in Gandhinagar at the state secretariat at 6.00 pm tomorrow to discuss and finalise the exact modalities and time-frame for mobilising the Rs 800 crore required for implementing the Madhavpura Mercantile Cooperative Bank (MMCB) bailout package, which was cleared by the Central government on June 20.

The mentioned Rs 800 crore would be pooled in by cooperative banks based in Gujarat. There are around 350 urban cooperative banks, 19 district cooperative banks and one apex state cooperative bank in Gujarat.

A resolution to the effect that these cooperative banks are willing to contribute a maximum of four per cent of their deposits for revival of MMCB was passed more than a month bank at a meeting held at the Gujarat State Cooperative Bank (GSCB) premises and presided by GSCB chairman Jayarambhai Patel.

Around 168 Gujarat-based cooperative banks already held Rs 594 crore worth of term-deposits in MMCB before the latter went into a crisis in the second week of March 2001. As part of the bailout package cleared by the Central government on June 20, the Gujarat government had extracted a promise from these 168 banks that they would not withdraw these deposits for the next six years.

As per the MMCB revival package announced on June 20, the Central government would stand guarantee for 70 per cent of the above Rs 800 crore, with the balance to be assured by the Gujarat government.

Tomorrow