Suvarna Bank depositors to write letter to RBI for merger

Shree Suvarna Sahakari Bank depositors, account holders and members' action committee held a meeting at Sambhaji Park in which they decided to send postcards to the Reserve Bank of India (RBI) for seeking its help. In the meeting around 200 depositors were present.

In the meeting members decided to send postcards to RBI in which they will be requesting it to settle the issue once and for all by way of the merger of the bank with some other bank. In the meeting committee representative Vilas Lanke appealed to the depositors to send letters to the RBI. He told DNA that over 1,000 depositors and members and account holders will be sending letters to the RBI urging it to sort out the issue.

On September 14, 2006 RBI imposed a moratorium and suspended its board of directors after which bank has been facing a crisis.

Later on, the co-operative department appointed an administrator and an inquiry was carried out regarding the financial irregularities.

The bank had build up losses to the tune of over Rs 350 crores. Saraswat co-operative bank has given willingness to the merger after the release of Suvarna Bank's financial reports this year.

In fact there have been reports of willingness of Indian Overseas Bank (IOB) in April and May regarding the merger.

Lanke told Saraswat Co-operative Bank last fortnight had placed their plan of merger before the depositors.

He also sought clarity on media reports that the IOB was keen on acquiring the bank.

He said that the depositors consent was not taken on this issue and demanded that if at all IOB wanted the merger; they must also inform people about their plan.