"We have received a proposal from GTCECS for acquisition of the bank," registrar of cooperative societies P K Pradhan told TOI. He said the state government has sought approval of the Reserve Bank of India (RBI) for going ahead with the proposal. The city-based cooperative bank, established in 1988, turned red during the last decade due to utter mismanagement. The state government's equity assistance of Rs 6 crore to revive the bank in 2007 also failed to keep the bank afloat. The state government had attempted to revive the bank by inviting Cosmos Cooperative Bank of Pune. But after initial negotiations COSMOS withdrew from the deal in 2012.
Official sources said GTCECS has come up with a proposal of management takeover of UCB for 25 years along with details of terms of conditions, further plan of action and strategies for revival of the bank. The GTCECS is also willing to take over the assets and the liabilities of UCB including the liability on account of payment to be made to the depositors.
Currently, UCB has assets worth Rs 1 crore besides bonds worth Rs 4 crore. On the liability side, there is the depositors' money of Rs 25 crore and unrecovered loan of Rs 30 crore.
Source: http://tinyurl.com/l5os8vj
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