THE DE-LICENSED Maharashtra Brahman Sahkari Bank Limited has claimed Rs 2.22 crore as insurance from Deposit Insurance Credit and Guarantee Corporation (DICGC), Mumbai, against certain objections the latter had raised in insurance claim applications.
The objections pointed out by DICGC have been rectified to claim the sum and the money claimed is expected to arrive by this month-end, Bank liquidator Ambrish Vaidya said.
The Corporation had held back this sum while releasing Rs 27 crore in June this year. Among others, there were three main objections of DICGC. One, the addresses of the claimants (bank depositors) were found to be incomplete in the software data sent to the Corporation.
Then, there were about 1,300 depositors whose names were same. But, since they were different individuals, they resided on different addresses. DICGC clubbed the depositors with similar names and released the insurance money accordingly.
It was only when the Corporation was sent their photo-signature and address cards that it believed them to be different persons.
Besides, there were about 350 depositors and borrowers whose names were same. The Corporation deducted the loan amount and released the remaining sum. Responding to this, DICGC has been told that they were separate entities.
The Bank has to return Rs 63 crore to its depositors. It has Rs 8 crore in its kitty while it received Rs 27 crore from DICGC against Rs 41 crore it claimed. The Corporation has withheld Rs 5 crore out of which Bank has claimed Rs 2.22 crore after rectifying the objections.
The received sum of Rs 27 crore has already been disbursed to aggrieved depositors in past six months. The Bank has to make loan recoveries worth Rs 32 crore.
DICGC returns insurance up to Rs 1 lakh on every deposit in banks that have gone into liquidation. Maharashtra Sahkari Bank, which has gone into liquidation, has 3,000 accountholders with deposits above Rs 1 lakh and their total deposit stands at Rs 19 crore, which it has to return.
Merger clearance likely soon
RESERVE BANK of India is likely to clear the merger of Maharashtra Brahman Sahkari Bank Limited and Hindu Sahkari Bank Limited (both at Indore) with Nagpur Sahkari Bank at its next meeting to be held around December 20 in Mumbai.
If the RBI clears the merger proposal, it will be one of the largest mergers of cooperative banks in the State. It will also mark the entry of yet another multi-state scheduled cooperative bank in State after Cosmos Bank and Saraswat Bank. The latter has amalgamated Vadodara-based Mandvi Cooperative Bank recently.