Page 22 - Banking Finance September 2019

CO-OPERATIVE BANK NEWS

CO-OPERATIVE BANK

NEWS
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NEWS

Kerala govt clarifies of RBI may allow small finance banks to sell holdings fully

not writing-off debts of after 5 years
cooperatives The RBI may give allowance to promoters of small finance banks to offload their
holding fully after five years of operation even as it is
The Kerala government has recently readying draft guidelines for offering fresh licenses to
clarified that aspiring small-finance lenders, according to the
it has not sources. The RBI may issue the draft guidelines in this
“written off” regard soon. The new draft is likely to address discrep-
the debts of ancies related to the holding company structure for
three coop-
small finance banks along with the listing issues.
erative insti-
tutions RBI accorded in-principle approval to 10 entities for entering the small-finance
which had banking space in September 2015. Seven of these, including Equitas, Ujjivan and
availed huge Utkarsh, follow a holding company structure, while AU Small Finance Bank, Capi-
loans from the state and district co- tal Small Finance Bank and Suryoday Small Finance Bank are among the excep-
operative banks. Cooperation minis- tions. Giving allowance to promoters to totally exit would clear the way for re-
ter Kadakampally Surendran said verse merger of the holding companies into the bank promoted by these firms.
that Rubco, Marketfed and Rubber
Mark had only been given loans by Model Co-op Bank Ltd holds 102nd annual general
the government to tide over their
losses. meeting
Model Co-operative Bank Ltd has recently held the 102nd annual general meet-
The Minister said the governments’
settlement plan had no connection ing at Xavier Institute of Engineering, Mahim in
with the Chief Minister’s Distress Re- Mumbai. Fr Reuben Tellis, parish priest, Mount
lief Fund as is being reported by a Carmel Church, Bandra (W) celebrated the eucharist
section of the media. Instead of pay- followed by the annual general meeting which was
ing back their dues to the coopera- attended by approximately 300 shareholders.
tive bank, the institutions will have The chairman, Albert W D'Souza presided over the
to pay it to the state government. meeting and extended a warm welcome to the
The cooperative institutions have shareholders/members. He thanked them for attending the annual general
been asked to come up with their meeting and reposing their trust in the bank. The chairman in his inaugural
revival plan so their debts can be speech placed before the shareholders/members the important developments
repaid in a timely manner. in the Indian economy during the year.

22 | 2019 | SEPTEMBER | BANKING FINANCE