Search:



The Web

Rediff








Home > Business > PTI > Report

RBI freezes business of Maratha Mandir Co-op Bank

August 13, 2004 21:48 IST
Last Updated: August 13, 2004 22:22 IST


The Reserve Bank of India on Friday froze the business of the Mumbai-based Maratha Mandir Co-operative Bank Ltd (MMCBL) with immediate effect and imposed a withdrawal ceiling of Rs 5,000 per account, making it the second bank after South Indian Co-operative Bank Ltd to face such a restriction within a week.

A RBI spokesperson told PTI that business of MMCBL has been frozen as the withdrawal pressures continued, mainly at the Ghatkopar, Antop Hill and Jogeshwari branches, and fixed a ceiling on withdrawals. The bank had seen withdrawals of around Rs 10 crore in the last two days.

However, a similar action against Punjab & Maharashtra Co-operative Bank Ltd (PMCBL), where depositors have also queued up at three branches, has not been proposed.

"PMCBL is well managed and there was no need for depositors to panic," RBI sources said.

Also Read


Crisis in Global Trust Bank


South Indian Coop Bank assets frozen


Recent reports on weak financial health of certain banking entities such as Global Trust Bank, South Indian Co-op Bank and CBI raids on Bank of Maharashtra officials in connection with a fraud have resulted in doubts among depositors, banking sources said.

However, MMCBL chairman Ashok Vichare and PMCBL managing director and CEO J Thomas have stated that liquidity was not an issue.

Vichare attributed the panic withdrawal in MMCBL to 'a false propaganda spread by a shareholder on the financial health of the bank'.

MMCBL, which has 11 branches and one extension counter, registered a net profit of Rs 25 lakh for the year ended March 2004 while its net non-performing assets were on the higher side at 25 per cent (Rs 20-22 crore), he said.

The deposits and advances stood at Rs 280 crore and Rs 139 crore respectively, he said adding the capital adequacy ratio was pegged at 9.9 per cent, which has now increased to 11.2 per cent.

Thomas said the PMCBL's deposits were at Rs 1,070 crore with advances at Rs 600 crore as on March 2004. The net NPAs and capital adequacy were 3.5 per cent and 14.5 per cent respectively.

Early this week, South Indian Co-operative Bank had seen a run on its deposits due to high level of NPAs, which resulted in the RBI imposing certain restrictions with the withdrawal ceiling fixed at Rs 1,000 per account.

Also Read:
Depositor panic at yet another bank



Article Tools
Email this article
Top emailed links
Print this article
Write us a letter
Discuss this article



Related Stories


MMCB cloud over co-op banks

How safe is your bank: checklist

Fitch upbeat on Indian banks








© Copyright 2004 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.











Copyright © 2004 rediff.com India Limited. All Rights Reserved.