Mmcb To Have 11-Member Board Soon

An 11-member board of management will soon replace the current administrator at Madhavpura Mercantile Cooperative Bank (MMCB), the Gujarat cooperation minister Ramanlal Vora said today.

The board, with the consent of Central registrar of cooperative societies (RCS) as well as the new chief executive officer (CEO), would appoint an experienced senior banker to manage the day-today affairs of the bank.

After this appointment, the CEO would file a claim before the Deposit Insurance and Credit Guarantee Corporation (DICGC). Once the settlement of this claim is sanctioned and disbursed by DICGC, depositors would be paid back their deposits. The state government is striving to expedite this process, the minister claimed.

He further said that as on March 31, 2001 MMCB had a net loss of Rs 1,030 crore as per its unaudited financial results. To commence day-to-day functioning it requires Rs 1,264 crore. The minister also said that the Reserve Bank of India may consider relaxing certain provisions of its credit policy to enable the urban cooperative banks to keeps deposits with MMCB. The central bank may also consider exempting them from the requisite penalties in case they fail to maintain the prescribed SLR and cash reserve ratio.