Page 21 - Banking Finance June 2023

Urban co-op banks want ties of UCBs, State Co-operative Banks Mehsana Urban Co-op
(StCBs) and District Central Co-opera-
RBI to permit them to un- Bank crosses business mix
tive Banks (DCCBs).
dertake one-time settle- With the 2020 BR Act amendment of Rs 13,000crore

ment of bad loans narrowing the regulatory arbitrage Gujarat based Mehsana Urban Coop-
between commercial banks and UCBs, erative Bank (Multi-State Scheduled
Urban co-operative banks (UCBs) have
Mehta said the OTS avenue should be Bank) crossed the business mix of more
requested the Reserve Bank of India to
opened up for UCBs to clean up their than Rs 13,000 crore and earned a
allow them to do one-time settlement
balance sheets. profit of Rs 117 crore in the 2022-23
(OTS) of bad loans along the lines of
financial year. The bank earned the
OTS available for commercial banks.
ED raids officials of Seva highest ever profit in its history.
UCBs emphasized that since the 2020
The bank has performed well on all the
amendment to the Banking Regulation Vikas Co-operative Bank
financial parameters in the current fis-
(BR) Act has addressed the vexing is- Enforcement Directorate (ED) has
cal. The business mix of the bank in-
sue of dual regulatory control, the seized gold and diamond jewellery
creased from Rs 12,370 (2021-22) to Rs
Central bank is empowered to permit worth Rs. 2.72 crore, Rs. 41 lakh cash,
13,657 crore as of 31st March 2023.
them to undertake OTS for recovery 4 high-end cars, digital devices and
from non-performing assets (NPAs), various incriminating documents dur- The deposits of the bank increased
said Jyotindra Mehta, President, Na- ing searches at ten locations associ- from Rs 7,228 crore to Rs 8078 crore
tional Federation of Urban Co-opera- ated with Pune-based Seva Vikas Co- whereas advances rose from Rs 5142
tive Banks and Credit Societies operative Bank fraud. crore to Rs 5579 crore in the 2022-23
(NAFCUB). FY. Besides, as of 31st March 2023, the
The ED in a statement said that their
share capital and working capital stood
Under dual regulatory control, the teams faced stiff resistance during
at Rs 375 crore and 9673 crores re-
Registrar of Co-operative Societies/ January 27 searches at premises of
spectively.
Central Registrar of Co-operative Soci- Amar Mulchandani, ex-Chairman of
eties were empowered to look after Seva Vikas Co-operative Bank, and Meanwhile, the bank announced its
UCBs' incorporation, registration, addresses linked to Vinay Aranha of 40th Annual General Meeting on 26th
management, recovery, audit, super- Rosary School Pune and Sagar May 2023 at Mehsana. This year the
session of the Board of Directors and Suryawanshi in Pune and Pimpri- bank also proposed a 15th percent divi-
liquidation. Chinchwad of Maharashtra. All of dend for its shareholders.

The Reserve Bank was vested with them are alleged to have benefitted The bank provides different types of
regulatory oversight on banking activi- from this scam, said ED. facilities, which include ASBA Services,

BANKING FINANCE | JUNE | 2023 | 19