Till March-2021, the Bank had paid Rs.366.54 Crores to 92602 needy depositors under the Hardship Scheme. “The proposal for merger with The Maharashtra State Co-op. Bank Ltd., (MSC Bank) is pending with RBI. In the meantime, the Bank is exploring the possibility of various options such as merger with any other strong bank including co-operative banks, conversion into a Small Finance Bank with the help of a strategic investor and Reconstruction or Revival of the Bank. The Bank has requested the RBI to extend its co-operation and guide to explore these options which also require a significant amount of cooperation from high value depositors,” said Pandit.
“The Bank has five lakh depositors with aggregate deposits of Rs.1297 crores out of which around 99% depositors i.e.4,84,336 have deposits less than insurance cover limit of Rs 5 lakh. Their total deposits are to the tune of Rs.714 crores. While hardly 1% i.e. 4562 depositors have total deposits of Rs.583 crores which are above the deposit insurance cover. Therefore, RBI thinks it logical to liquidate the bank and fully refund deposits under insurance cover. Moreover RBI/DIC may get hold of banks liquidity of Rs.870 crores consisting of Government securities and banks’ own premises. Hence in the process, it has to lose very negligible funds of its own. If the bank is liquidated, high value depositors having deposits of more than Rs 5 lakh may lose around 65% of their total deposits irrespective of the option to save the bank ,” a release from the Bank said.