RBI suggests change in Maharashtra bank boardMay 7th, 2011 - 8:55 pm ICT by IANS
Mumbai, May 7 (IANS) In a jolt to the Maharashtra government, the Reserve Bank of India (RBI) Saturday recommended the supersession of the board of directors of Maharashtra State Cooperative (MSC) Bank and appointed two administrators to manage the bank’s affairs.
The action came under Section 110-A of the Maharashtra State Societies Act, 1960, following a negative net worth Rs.144.22 crore which came out in the bank’s statutory audit for 2009-10.
Following suspected irregularities in the bank’s functioning, the RBI recommended to the state commissioner of cooperation and the registrar of cooperatives to take action to supersede the MSC Banks’ board.
Accordingly, Agriculture and Marketing Principal Secretary S.K. Goyal and Planning Secretary S. Shrivastava have been appointed the new administrators of the apex cooperative bank in the state.
Speaking to newspersons here Saturday evening, Goyal assured the people that “the financial condition of the MSC Bank is sound and depositors need not have any concerns”.
“The decision to appoint an administrative board is primarily directed to further strengthen the financial position of the bank and bring professionalism and transparency,” Goyal said.
As on March 31, the bank’s deposits stood at Rs.17,428 crore, of which Rs.1,340 crore are lying in current and savings accounts. The rest are lying under various types of fixed deposits.
Besides, the bank has invested another Rs.11,986 crore in different government securities.
The bank also has a cash balance of Rs.1,350 crore, plus its own fund of Rs.3,053 crore.
The net non-performing assets worked out to 7.5 percent, which is not more than Rs.400 crore, Goyal said.
The bank is engaged in providing banking support to agriculture and farming community.
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