Published On : Wed, May 8th, 2013
Latest News | By Nagpur Today Nagpur News

Maharashtra Govt move to enthuse fresh life into NDCCB struggling for existence

Nagpur News:

The Maharashtra Government, in an effort to enthuse fresh life into Nagpur District Central Cooperative Bank (NDCCB), has formed a Committee under the Chairmanship of Maharashtra Agriculture Minister Radhakrishna Vikhe Patil to sell-off the Bank’s newly built building in Mahal area of Nagpur and the minister has been the responsibility to deal with issue. It may be recalled the Nagpur Today had reported grave irregularities in the process of selling the building.

The Reserve Bank of India (RBI) had recently forcefully directed all cooperative banks to seek RBI’s licenses for running the banks. However, only those banks whose financial and capital position was very good received the RBI licenses. But the NDCCB, facing enormous financial difficulties, could not fulfill the RBI terms and failed to arrange Rs 100 crore  capital needed for RBI’s license. Meanwhile, the RBI authorities extended the NDCCB’s license on their own and allowed the NDCCB to function till November 2013 only. Now, the NDCCB has to arrange Rs 100 crore anyhow for RBI’s license otherwise a dark future stares the face of NDCCB. The only chance for the NDCCB to function without difficulty is the mercy of RBI if the nation’s central bank dilutes its rules and regulations as far as NDCCB is concerned and extends the license for the period of two more years.

The only plus point and a thin hope for NDCCB is in the shape of Rs 40 crore the cooperative bank has managed but for the remaining amount of Rs 60 crore the NDCCB must make efforts gigantic way so that Rs 100 crore capital could be arranged for RBI’s license. The NDCCB today in somehow in good position after it recovered the losses. If the NDCCB disposes of its new building based at Tilak Statue Square in Nagpur Mahal area and the bank hopes to mop up Rs 80 crore from the sale of the building. The bank also floated tenders four times for the sale purpose. However, to the disappointment of NDCCB, nobody came forward to purchase the bank building.

Meanwhile, a proposal has been forwarded to Maharashtra Government with a request to purchase the building themselves. The Maharashtra Government, too, initiated steps for disposing the bank building and formed a committee under the Chairmanship of Maharashtra Agriculture Minister Radhakrishna Vikhe Patil in this regard.The committee would decide the cost for sell-off after proper valuation of the building. Then only the process for selling-off the building would be carried out. The NDCCB hopes for a new lease of life by a deal for disposing of the building by completing the process before November 2013 and earning a good amount of money needed for RBI’s license.

When asked about the issue, Vikhe Patil said the Maharashtra Government has given him the responsibility to handle the issue and as a first step he has formed committee to look after the sale of the NDCCB building. The committee comprised of top officials who would make valuation of the building for the proper cost the building could be sold-off, said the minister while addressing a press conference he at Patrakar Bhavan. However, he made it clear that the proposal regarding the issue has not been sent to  Deputy Chief Minister who is also the Finance Minister.