Nashik People's Co-op Bank, Thane Janata Bank may merge

Nashik People's Co-operative Bank is likely to merge with the Thane Janata Co-operative Bank. The Thane Janata Co-op Bank board would make an announcement in this regard in a few weeks' time.

"The Thane Janata Co-op Bank has sent us a merger proposal, following a visit from a panel of experts to assess the viability of the merger. This panel is expected to place the report to the board of the Thane Bank. After the board approves it, the proposal will be sent to the RBI for approval," said a People's Bank official.

People's Bank's non-performing assets (NPAs), for the current year, are 42.43 per cent. A year after the RBI appointed an administrative board to oversee the functioning of the bank, outstanding loans have come down from Rs 122 crore to Rs 98.50 crore.

The Reserve Bank of India (RBI) had suspended the board of Nashik People's Co-op Bank for violation of its norms in distributing loans, high non-performing assets and non-recovery of bad debts.

The bank has set up 10 recovery squads and taken legal action against 2,240 debtors with a claim of Rs 64.88 crore, apart from recovering Rs 23.50 crore.

The bank has recovered Rs 3.93 crore. "Seizure and auction of assets against bad loans are also under way," the bank officials said.

"The bank has fixed deposits FDs) amounting to Rs 176 crore. Deposits amounting to Rs 1.80 crore have been paid to 445 deposit-holders. Remaining 241 cases will soon be settled," sources said. The market valuation of 12 buildings owned by the bank is about Rs 10 crore.