Mmcb May Close Down As Ucbs Turn Chary

The scam-tainted Madhavpura Mercantile Co-operative Bank (MMCB), a year after resuming its operations, has thus far managed to get only Rs 271 crore of the Rs 1,264 crore revival package.

The package envisaged a contribution of Rs 800 crore by over 350 Gujarat co-operative banks with the balance Rs 464 crore to be forked out by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

The DICGC has thus far released Rs 460 crore for payment of deposits up to Rs 1 lakh. An amount of Rs 256 crore of uninsured deposits of Rs 1 lakh and more were to be retained for another three years at 8 per cent interest. But the urban co-operative banks (UCBs) have expressed their inability to pool in their share of funds.

 

As a result, MMCB is once again on the verge of closing down and the depositors, who are yet to be paid back, have again turned apprehensive about the fate of their funds lying with bank over the past two years.

The newly appointed chief executive officer of the bank, B K R Maruthy, has appealed to all the UCBs in the state to come forward to deposit the funds.