Govt. to revive MMCB

By Our Special Correspondent

GANDHINAGAR, MAY 15. The Gujarat Government, with the support of the co-operative banking sector, today committed itself to revive the Madhavpura Mercantile Co-operative Bank (MMCB) which virtually collapsed in March following the Rs. 1,000 crores stock exchange scam.

It was decided at a meeting of the leading co-operative sector banks and others in the presence of the Minister for Co- operation, Mr. Ramanlal Vora, here today that some of the strong urban co-operative banks would help the MMCB with Rs. 700 crores while the Co-operative Insurance Guarantee Corporation of the Central Government would be requested for another Rs. 400 crores to revive the sinking bank.

It was pointed out that the MMCB would need about Rs. 1,000 crores for revival against which the total deposits lying in various co-operative banks in the state was more than Rs. 16,000 crores. Even if only four per cent of the deposits were temporarily diverted to the MMCB, it would collect more than Rs. 1,200 crores to resume operations.

But since it would not be possible for all the banks to divert the deposits, the chairmen of some of the well-off urban co- operative banks including the Gujarat State Co-operative Bank Association, the Gujarat Urban Bank Federation, the Ahmedabad District Co-operative Bank, the National Federation of Urban Co- operative Banks, and others gave a commitment to support the MMCB with deposits of Rs. 700 crores.

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Section  : Other States
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