Abhyudaya Co-operative Bank Ltd is likely to take over the distressed Maratha Mandir Co-operative Bank. Abhyudaya Co-operative Bank is currently assessing the impact of the proposed merger on its balance sheet, said banking sources. | |
| It has asked the Brihan Mumbai Nagarik Sahakari Banks Association Ltd to conduct a feasibility report on the distressed co-operative bank, he added. |
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| Brihan Mumbai Nagarik Sahakari Banks Association is the Mumbai-headquartered federation for co-operative banks. |
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| "On completion of the study, the same will be submitted to the Reserve Bank of India (RBI) and the Registrar of Co-operative Societies for consideration," said a senior official from the association. |
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| The RBI imposed a directive on Maratha Mandir Co-operative Bank since August 13 on account of its deteriorating financial health and had imposed a withdrawal limit of Rs 10,000 for account holders. |
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| Amalgamation of the two co-operative banks will require formal approval of shareholders of the respective banks, a no objection certificate (NOC) from the central bank and approval from the Registrar of Co-operative Societies, said the official. |
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| When contacted bank officials were not available for comment. Abhyudaya Co-operative Bank is a scheduled bank with 39 branches and one extension counter. |
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| The bank's non performing assets (NPAs) will rise with the merger of Maratha Mandir Co-operative Bank. Its net NPAs stood at Rs 21.49 crore and gross NPAs at Rs 204.50 crore as on March 31, 2004. The bank's capital adequacy ratio stood at 37.18 per cent. |
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