| The Reserve Bank of India (RBI) had suspended the board of Nashik People's Co-operative Bank and appointed an administrative board one-and-a-half years ago for violation of RBI norms in distributing loans, high non-performing assets (NPAs) and non-recovery of bad debts. |
| Earlier, the Thane-based Janata Co-operative Bank and the Pune-based Saraswat Co-op Bank had shown their willingness to take over the Nashik People's Bank. But, they had backed out due to the large banking staff and high proportion of NPAs. |
| The decision on the takeover was taken at the annual general meeting of Namco bank a couple of months ago and towards this end a panel was set up. |
| The panel has studied the financial condition of the Nashik People's Bank and made recommendations. As the number of employees at the bank staff is large, the panel has prepared a salary structure as per seniority and category, Namco Bank officials said. |
| Namco Bank is expecting some concessions from RBI such as the NPAs of Nashik People's Bank should not be considered as the NPAs of Namco Bank after the merger and the bank will not be responsible for the previous losses of Nashik People's Bank. |
| To meet the liabilities of Nashik People's Bank, the bank has demanded Rs 200 crore loans with three per cent interest rate from the state government. |
| Currently, the NPA of the Nashik People's Bank has come down from previous 46.75 per cent to 41 per cent. After the appointment of the administrative board, the outstanding loans of the bank have come down from Rs 123.52 crore to Rs 91.48 crore. |
| Currently, the bank has Fixed Deposits amounting to Rs162 crore. It has 12 branches and 340 employees, including 13 senior officials, 34 junior officials, 208 clerks and 85 peons. The bank spends Rs. 21 lakh per month on salaries of its employees. Out of 340, 162 employees have applied for earlier voluntary retirement scheme (EVR). |
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