Mumbai: Bank of Maharashtra is all set to close its Latur office with an objective to control cost. This would mean all the activities handled by Latur district office will have to be taken care by Solapur office. The bank which is put under Reserve Bank of India’s prompt corrective action (PCA), had already reported progress in recoveries in fourth quarter of 2017-18 but still went ahead with this new measure.
This move by the bank would mean that around 18 branches in Latur district, will have to report to Solapur district office. Solapur already has over 40 branches under them. “Adding the responsibility of Latur branches, would be adding additional burden on Solapur,” said a member of banks union. It is known that Latur is just the first office. There are chances that other regional offices will also shut shops in the coming quarter. The office in Latur was started with an intention to cater to communites that are backward in the region. “This move has completely squashed the intention behind the existence of Latur office,” said Devidas Tuljapurkar Convenor UFBU Maharashtra State.
The bank had informed during its quarterly results that the bank will bring down its non-performing assets (NPA) to 9 per cent and that it doesn’t face any fresh slippages in NPA. To meet its capital requirement, Pune-based lender will also be raising fresh capital by selling government shares.