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07 Sep 2002 IDBI not enthused qith mof bid on asset merger with IFCI
New Delhi: The ministry of finance's attempts to push forward a proposal for merger of good assets of the Industrial development Bank of India and IFCI Ltd to form a new development financial institution does not seem to have gone down well with IDBI's top brass.
State Bank loan book touches Rs 3,000 crore in fiscal till date
Mumbai: State Bank of India has witnessed an uptick in its incremental credit offtake to the tune of Rs 3,000 crore in the first five months till August 31. Full story
UWB plans new integrated treasury branch in Mumbai
Mumbai: United Western Bank has taken an initiative to set up an integrated treasury branch in Mumbai in a bid to bring the dealings in the domestic and forex treasuries under a single roof.
SBI Life joins hands with BNP Paribas for marketing
Mumbai: SBI Life Insurance Company has signed a memorandum of understanding with BNP Paribas to distribute its group insurance products across India.
Sanchayani director remanded to custody
Kolkata: One of the directors of Sanchayani Savings and Investments Ltd, Kolkata, Sunil Ganguly, who was arrested by police in connection with misappropriation of deposits, has been remanded to police custody till September 12.
BoI hikes FCNR rates
Mumbai: Bank of India has raised FCNR deposit rates by 15-20 basis points in some maturities effective September 7. Rates on dollar US deposits are 1.70 per cent (1.50 per cent) for one year to less then two years.
It's never been that good on home loans front, go for one now
Mumbai: That dream home may not be so distant now. The past few years have seen a free fall in interest rates across the board and the home loan sector has been no stranger to this. From 15-16 per cent five years back to 9-11 per cent today, the home loan industry has come a long way.
14 subsidiaries going to UTI I
New Delhi: The division of assets between the government-held UTI I and UTI II of UTI is beginning to take shape. The 14-odd subsidiaries of mutual fund like UTI Bank, UTI Investor Services, UTI Investment Advisory Services, UTI Securities Exchange, UTI Institute of Capital Markets, UTI International, Unit Securities Exchange of India, and the real estate of UTI would go to the government-held UTI I.
SBI Life Insurance unveils two new products
Mumbai: SBI Life Insurance Company Ltd (SBI Life) has launched two new insurance products: a home loan group insurance policy and Sudarshan, an endowment plan.
SBI Life managing director and CEO R Krishnamurthy says: "One of the major concerns facing a housing loan borrower is to ensure the welfare of his family and protection of housing property. This scheme will enable home loan borrowers to secure financial protection for their families with the repayment of the outstanding loan met by SBI Life, in event of any untoward happening."
The home loan insurance scheme will initially be offered to the home loan borrowers of State Bank of India (SBI). It will provide life insurance cover, accidental death and total permanent disability benefits to those who have availed of home loans.
"This scheme may eventually be rolled out to cover borrowers from other housing finance institutions once the bancassuarance laws are in place," says SBI chairman Janki Ballabh.
Sudarshan is designed to provide policyholders with protection as well as savings for the future and has a host of flexible features that can be customised to meet specific requirements. "We are confident that given the basic buoyancy of household savings in the Indian market, Sudarshan will become a prominent long-term savings instrument," says Krishnamurthy.
The optional benefit attached to Sudarshan will enable savers to multiply their savings consistent with the increase in cost of living over the duration of the plan, he says. The scheme has a critical illness rider (Dhanvantri) that will provide flexible benefits to policyholders to insure against six dreaded diseases.
Insurance firms to trade in derivatives soon
New Delhi: Insurance companies will be allowed to invest their funds in swap and other derivative products. The Insurance Regulatory and Development Authority (IRDA) is considering making amendments to the investment regulations to pave way for such investments.
"We are considering derivatives and swaps as additional methods of investments. We will announce amendments to the investment norms for the purpose," says IRDA chairman N Rangachary.
Rangachary says the first set of insurance brokers should be in operation by November 2002. "According to the programme charted out by the IRDA, brokers' regulation and those relating to corporate agencies are to be issued by the end of September 2002, after which the applications will be invited."
He says no changes are likely to be incorporated in the draft regulations on brokers that the IRDA had put up on its website for comments.
RBI relaxes EEFC account norms for EOUs
Mumbai: The Reserve Bank of India (RBI) has liberalised the procedures for the release of foreign exchange for medical treatment abroad and loans from close relatives outside India. It has also further liberalised the Exchange Earners' Foreign Currency (EEFC) account scheme for export-oriented units (EOUs).
"With a view to enabling residents to avail themselves of foreign exchange for medical treatment abroad, it has now been decided that authorised dealers may release foreign exchange up to $50,000 for medical treatment outside India, without insisting on any estimate from a doctor or hospital, on the basis of a declaration of requirement given by the applicant," says the RBI.
on loans from close relatives outside India, the RBI decided to allow up to $250,000, provided the loan is free of interest and is repayable after one year instead of the earlier minimum non-payment seven-year period.
As a further measure towards giving boost to export-oriented units and rationalisation of the EEFC account scheme, there will be only two categories of EEFC accountholders. One, those who can retain up to 100 per cent of their receipt in foreign exchange and others who can retain up to 50 per cent of their receipt in foreign exchange.
Accordingly, a 100-per cent EOU or a unit situated in export processing zones (EPZs), software technology parks (STPs) and electronic hardware technology parks (EHTPs) will now be eligible to credit up to 100 per cent of their foreign exchange receipts to their EEFC account against the existing eligibility of credit up to 70 per cent.
So far, the facility of crediting up to 100 per cent of receipts was available only to status-holder exporters and professionals who rendered services in their individual capacity, to entities outside India.
s a result of this liberalisation, the facility of crediting up to 100 per cent of foreign exchange receipts to their EEFC accounts will now also be available to status-holder exporters, professionals, 100-per cent EOUs and units in EPZs, STPs and EHTPs.
ICICI Pru Life set to exploit pension market
Mumbai: ICICI Prudential Life Insurance, the No 1 private life insurer in India, has emerged as a key player in the retirement solutions market, garnering over 25 per cent of premium contributions to pension plans during April-June 2002.
The company's penetration into the retirement market was driven by the launch of a slew of retirement products and a focused approach towards driving awareness of the category and expanding the market.
ICICI Prudential entered the retirement space with the launch of ForeverLife and ReAssure just one year ago. It subsequently launched two unit-linked pension plans, LifeTime Pension and LifeLink Pension, in April 2002.
Says ICICI Prudential Life Insurance managing director Shikha Sharma: "Increasing longevity, lower working tenures and an increasing dependency ratio are some of the factors that make retirement planning a must for everyone in India. We recognised this need and decided to focus our efforts on educating consumers about the need for retirement planning, and then meeting the need with a range of products. We've complemented this effort with extensive and specific training for our advisors, and also held seminars for consumers on the topic of life insurance and retirement planning, which were met with an encouraging response."
The comprehensive regulations laid down by the Insurance Regulatory Development Authority for life insurers operating in the pension space have also been instrumental in driving category growth, she says. "In fact, life insurers are a natural fit for pensions market as they have the expertise in managing long-term savings, which is critical for any pension operator."
There are some trends that testify to the importance of retirement planning. Nearly 90 per cent of the working population does not have any formal provision for old age, so the retirement planning category becomes relevant to a wide section of the population.
With a sharp improvement in life expectancy rates, individuals are expected to live longer, but work for a shorter fraction of their lives. With age come health-related expenses, which are highly inflationary and must be provided for. And with the overall costs of living continuing to rise, it's essential to plan for a steady income stream post-retirement.
The company's retirement solutions are designed according to the varied needs of consumers. "Our product bouquet serves the appetite of both risk-taking and risk-averse categories of consumers along with life protection, and most importantly, a regular income guaranteed for life," Sharma says.
ICICI Prudential sold more than 150,000 policies as of 30 June 2002 with a sum assured in excess of Rs 4,100 crore and a premium income of over Rs 165 crore.
New York Life gets its strengths reaffirmed
New York: Even as the credit rating agency Standard & Poor's (S&P) is downgrading ratings of several life insurers worldover, the New York-based New York Life Insurance Company got its financial strengths affirmed.
The affirmation comes despite the company's exposure to some of the most notable problem credits at the beginning of 2002. In the first six months of 2002, as a result of these credit issues and the decline in the equity markets, it suffered realised and unrealised losses of $625 million.
The company has been able to sustain these losses because of its diversification and extremely strong capital base, which even after such losses remained extremely strong as indicated by a risk-based capital ratio on S&P's model of approximately 316 per cent.
A combination of several positive features - extraordinary strong business position in individual life and annuities, growing track record of enhancing the productivity of its career agency force, continued improvement in individual sales, disciplined approach to asset and liability management and small but rapidly growing presence in the global markets - satisfied S&P to affirm its double-A-plus counter-party credit and financial strength ratings on New York Life.
S&P also affirmed its ratings on life insurer's affiliates with stable outlook. "New York Life is one of the most respected names in the domestic life insurance business," says S&P's credit analyst Thomas Upton.
The company's individual life and annuity sales were up 42 per cent and 6 per cent, respectively, in 2001 versus 2000, with the former resulting in about a 7 per cent market share nationally. In 2001, the company was the number one US life insurer based on new sales, as reported by Limra.
Slightly offsetting the positive factors mentioned above are the developing business position of New York Life's investment management subsidiaries and the ongoing process of maintaining and enhancing the operational efficiencies that have been gained in recent years.
New York Life reorganised all its investment management business operations under a separate subsidiary to integrate all related functions within its group. S&P believes the insurer has begun to show cohesion in its strategy for this business, as demonstrated by total sales in 2001 of $16.4 billion, roughly 20 per cent above those of the previous year.
Growth in agency life sales increased by 18 per cent in year 2001. There has also been substantial growth in individual life and annuity business now being sold by alternative means, including distribution through banks, stockbrokers, and independent agents. Brokerage sales increased 125 per cent in 2001 and have continued to increase by 58 per cent for the first half of 2002 compared with the first half of 2001.
In addition, S&P believes New York Life has established a good foothold in several foreign markets, most prominently Mexico, with its international sales increasing 29 per cent from December 2001 to June 2002 and now account for 25 per cent of all life sales.
New York Life now projects breakeven for this business in 2002, which is one year ahead of its former schedule. S&P expects that New York Life's total individual life insurance sales will be up over 15 per cent for 2002, while individual annuity sales will remain flat despite the volatile equity markets. Any losses in the asset portfolio through the remainder of 2002 will be modest, reflecting the overall high quality of that portfolio. 06 Sep 2002 United Western Bank NPAs rise Rs 35 crore to Rs 424 crore
Mumbai: The gross non-performing asset level of United Western Bank has increased by Rs 35.19 crore to Rs 424.27 crore at the end of quarter ended June 30 compared to Rs 389.08 crore at end-March 2002. IIB to go global soon
New Delhi: The Indian Institute of Bankers, which caters to the education needs of banking and finance professionals and institutions in India, proposed to go global by tying up with institutes in UAE, Afghanistan and Sri Lanka, Mr RH Sarma, IIBs CEO, said on Wednesday. Way2Wealth plans foray into insurance broking
Bangalore: Way2Wealth Securities, the Bangalore-based multi-locational investment-consulting firm, has chalked out an aggressive growth plan to expand its network and enter new businesses of insurance broking and Internet broking. ICICI Pru grabs 25 pc of pension plan market
Mumbai: ICICI Prudential Life Insurance Company has garnered over 25 per cent of retirement solutions market, in terms of the premium contributions to pension plans during April-June 2002. IRDA urged to allow entry of sub-brokers
Mumbai: The Mumbai-based Insurance Brokers' Association of India has represented to the Insurance Regulatory and Development Authority (IRDA), asking the regulator to allow sub-brokers to operate. Indian Bank cuts home loan rates
Thiruvananthapuram: Indian Bank has reduced the interest rates on fresh home loans by 50 to 75 basis points through various slabs with effect from September 1. Mortgage-backed securities - FI investments to attract 50 per cent risk weight
New Delhi: Financial institutions issuing housing loans to individuals against the mortgage of residential housing properties will now assign a risk weight of 50 per cent as against the prevailing risk weight of 100 per cent. LIC Madurai first premium income up 137 pc
Madurai: The Madurai Division of the Life Insurance Corporation (LIC) has registered an improved performance despite the entry of private players into the insurance sector. ING to `rebrand' Vysya Bank
Mumbai: The Dutch financial services major ING Group, whose proposal to enhance equity holding in Vysya Bank to 49 per cent was cleared by the regulators recently, now plans to take up a `rebranding' and `repositioning' exercise for Vysya Bank by . Karur Vysya chief hails securitisation Ordinance
Karur: P.T. Kuppuswamy, Chairman of the Karur Vysya Bank Ltd (KVB), has welcomed the recently promulgated securitisation Ordinance. "It will be another weapon in our armoury to collect our outstandings." IOB credit portfolio set to increase by Rs 1,000 cr
Chennai: Indian Overseas Bank's (IOB) credit portfolio is expected to increase by Rs 1,000 crore in the first half of this fiscal. Nearly a fourth of this would come from housing advances. Bonds auction
Mumbai: The Government of India has converted ad hoc treasury bills worth Rs 10,000 crore into special Government securities. These are the 6.18 per cent 2005 for Rs 3000 crore, the 7.27 per cent 2013 for Rs 4,000 crore and 7.38 per cent 2015 for Rs 3,000 crore. Study financial statements closely, bankers urged
Managalore: The Mangalore-based Karnataka Bank organised a seminar on `Balance sheets and integrated risk management' for the benefit of its executives. LIC scraps New Bima Nivesh
Kolkata: Life Insurance Corporation has finally decided to phase out 'New Bima Nivesh' and 'New Jeevan Shree', two of its popular products. HDFC said to be keen on buying some of IFCIs good assets
Mumbai: Even before the IFCI bailout package, estimated at Rs 13,000 crore, has been finalised, HDFC has approached IFCI for buying out some of its good assets. Plan to allow higher ECB pre-payments
Mumbai: The Government and the Reserve Bank of India are now considering a policy change to allow higher pre-payment of external commercial borrowings (ECBs). 05 Sep 2002 United Western Bank NPAs rise Rs 35 crore to Rs 424 crore
Mumbai: The gross non-performing asset level of United Western Bank has increased by Rs 35.19 crore to Rs 424.27 crore at the end of quarter ended June 30 compared to Rs 389.08 crore at end-March 2002. IIB to go global soon
New Delhi: The Indian Institute of Bankers, which caters to the education needs of banking and finance professionals and institutions in India, proposed to go global by tying up with institutes in UAE, Afghanistan and Sri Lanka, Mr RH Sarma, IIBs CEO, said on Wednesday. Way2Wealth plans foray into insurance broking
Bangalore: Way2Wealth Securities, the Bangalore-based multi-locational investment-consulting firm, has chalked out an aggressive growth plan to expand its network and enter new businesses of insurance broking and Internet broking. ICICI Pru grabs 25 pc of pension plan market
Mumbai: ICICI Prudential Life Insurance Company has garnered over 25 per cent of retirement solutions market, in terms of the premium contributions to pension plans during April-June 2002. IRDA urged to allow entry of sub-brokers
Mumbai: The Mumbai-based Insurance Brokers' Association of India has represented to the Insurance Regulatory and Development Authority (IRDA), asking the regulator to allow sub-brokers to operate. Indian Bank cuts home loan rates
Thiruvananthapuram: Indian Bank has reduced the interest rates on fresh home loans by 50 to 75 basis points through various slabs with effect from September 1. Mortgage-backed securities - FI investments to attract 50 per cent risk weight
New Delhi: Financial institutions issuing housing loans to individuals against the mortgage of residential housing properties will now assign a risk weight of 50 per cent as against the prevailing risk weight of 100 per cent. LIC Madurai first premium income up 137 pc
Madurai: The Madurai Division of the Life Insurance Corporation (LIC) has registered an improved performance despite the entry of private players into the insurance sector. ING to `rebrand' Vysya Bank
Mumbai: The Dutch financial services major ING Group, whose proposal to enhance equity holding in Vysya Bank to 49 per cent was cleared by the regulators recently, now plans to take up a `rebranding' and `repositioning' exercise for Vysya Bank by . Karur Vysya chief hails securitisation Ordinance
Karur: P.T. Kuppuswamy, Chairman of the Karur Vysya Bank Ltd (KVB), has welcomed the recently promulgated securitisation Ordinance. "It will be another weapon in our armoury to collect our outstandings." IOB credit portfolio set to increase by Rs 1,000 cr
Chennai: Indian Overseas Bank's (IOB) credit portfolio is expected to increase by Rs 1,000 crore in the first half of this fiscal. Nearly a fourth of this would come from housing advances. Bonds auction
Mumbai: The Government of India has converted ad hoc treasury bills worth Rs 10,000 crore into special Government securities. These are the 6.18 per cent 2005 for Rs 3000 crore, the 7.27 per cent 2013 for Rs 4,000 crore and 7.38 per cent 2015 for Rs 3,000 crore. Study financial statements closely, bankers urged
Managalore: The Mangalore-based Karnataka Bank organised a seminar on `Balance sheets and integrated risk management' for the benefit of its executives. LIC scraps New Bima Nivesh
Kolkata: Life Insurance Corporation has finally decided to phase out 'New Bima Nivesh' and 'New Jeevan Shree', two of its popular products. HDFC said to be keen on buying some of IFCIs good assets
Mumbai: Even before the IFCI bailout package, estimated at Rs 13,000 crore, has been finalised, HDFC has approached IFCI for buying out some of its good assets. Plan to allow higher ECB pre-payments
Mumbai: The Government and the Reserve Bank of India are now considering a policy change to allow higher pre-payment of external commercial borrowings (ECBs). 03 Sep 2002 IDBI interested in UBI, BoB and PNB for merger
New Delhi: The finance ministrys search for a potential merger partner for IDBI has zeroed in on three banks, namely, UBI, Bank Of Baroda and PNB.
RBI asks state-run banks to get agri-act right
Mumbai: The Reserve Bank of India on Monday urged state-run banks to achieve the minimum target of 18 per cent agricultural lending of their net bank credit by the end of this fiscal.
ITI begins migration from A to B NBFC
Chennai: Following its recent decision to migrate from category A to B non-banking finance company, the Chennai-based Investment Trust of India Ltd has started repaying its depositors.
L&T raises 10-year Rs 65-cr bonds priced at 8.25 per cent
Mumbai: Larsen & Toubro Ltd has raised Rs 65 crore through a 10-year secured bond at a coupon rate for 8.25 per cent payable annually. The issue of Rs 65 crore opened on August 20 with a book building range of 8.20 per cent to 8.40 per cent.
IBM Global, i-flex bag banking project
Bangalore: IBM Global Services, the services arm of IBM India Ltd, will implement the centralised banking solution in Bharat Overseas Bank (BOB) Ltd.
SBI to focus on Kerala home loan segment
Kochi: State Bank of India (SBI) is concentrating on the home loan market of Kerala, having slashed its interest rates to one of the lowest in the country.
LIC scheme for Corp Bank a/c holders
Mangalore: Life Insurance Corporation of India (LIC) has finalised a scheme, `Corp Jeevan Raksha', to provide group insurance coverage to all deposit holders of the Corporation Bank.
LIC unit pact with 3 pvt cos
Kochi: The Ernakulam Division of Life Insurance Corporation of India (LIC) has entered into a tie-up with three private firms for corporate agency and distribution of various insurance products in the State.
Motor insurance tariff deregulation on cards
New Delhi: A move is on to deregulate motor insurance tariff. The Insurance Regulatory and Development Authority (IRDA) has asked the Tariff Advisory Committee (TAC) to bring out a white paper on `de-tariffing' the motor insurance sector.
Public insurers shy away from State transport cover
Hyderabad: Faced with mounting claims ratios, public sector insurance companies have refused to provide insurance cover to the State road transport undertakings (SRTUs) in the country. Canara Bank plans coin counters
Bangalore: Canara Bank has launched a nationwide awareness drive on coins starting with Bangalore, Chennai, Hyderabad and Kozhikode. A mobile counter stationed at bank branches in prominent places will dispense coins of Re 1, Rs 2 and Rs 5.
IFCI assets may go to lenders
New Delhi: The bail-out package for IFCI Ltd is likely to involve a large-scale takeover by other banks and financial institutions of its critical liabilities.
Return Rs 600 cr to Govt ahead of public offer, PFC advised
Mumbai: J M Morgan Stanley, Power Finance Corporation's consultants, has advised the corporation to return around Rs 600 crore of equity to its owner, the Government, in order to make its initial public offering (IPO) plan of 10 per cent of the reduced equity base amounting to Rs 46 crore attractive to the investor
Orissa to issue bonds to raise Rs 350 crore
Bhubaneswar: The Housing and Urban Development Department of the Government of Orissa has launched a major project for sewerage improvement in Cuttack, Puri, Bhubaneswar, Rourkela, Sambalpur, Berhampur and Anhul, by raising funds from the secondary market.
StanChart, Grindlays merger completed
Mumbai: The first phase of integration between the two entities involved people integration, followed by systems integration, and thirdly, the liability/deposit transfers.
Srei in securitisation pact with ICICI Bank
Mumbai: The company is hopeful of a 25 per cent growth in business during the first half of the current financial year (which will end on September 30, 2002).
CII welcomes UTI bailout package
New Delhi: Confederation of Indian Industry president Ashok Soota has welcomed governments Rs 14,561-crore bailout package for the financially distressed Unit Trust of India. 02 Sep 2002 Kerala: Chit fund companies protest amendments
Thiruvananthapuram: The new amendments which have been incorporated into the Kerala Chitties Act would sound the death-knell of the sector, putting lakhs of customers and operators to serious difficulties.
RBI for strict provisions under debt ordinance
Mumbai: The Reserve Bank of India is all set to suggest to the Ministry of Finance that legal provisions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance (2002) be made iron-clad.
IA may pay 17 pc more for insurance renewal
New Delhi: Indian Airlines is to pay close to $31 million to renew the insurance cover for its fleet of more than 50 aircraft.
Third party cover: `IRDA must issue clear-cut norms'
While condemning general insurance companies for turning down third party insurance cover for motor vehicles, the Coimbatore Consumer Cause (CCC) has appealed to the Government and the IRDA to issue specific instructions and strict guidelines to the insurance companies on this issue.
Insurance cos prefer short-term securities
Mumbai: Unless yields rise, insurers are likely to stay away from the new crop of Government securities, preferring to tap the secondary markets for high coupon securities. Moreover, traders said, insurers were increasingly looking at the shorter ended securities.
Tenure of recap bonds for banks to be perpetuity
New Delhi: The Government has decided to convert fixed coupon rate of 10 per cent on recapitalisation bonds of Rs 5,000 crore issued to public sector banks into floating rates.
`Limitation clause may hit NPA recovery'
The fine print of the Ordinance to recover non-performing assets (NPAs) continues to worry lenders. Banks fear that the stipulation of the applicability of the Limitation Act might come in the way of initiating fresh action under the Ordinance against a large section of defaulting borrowers.
Hindustan Photo Films owes Rs 437 cr to banks
Coimbatore: Coimbatore district accounts for over 14 per cent of the bad loans in the State. According to the loan defaulters' list (as on March 31, 2001) released by the Coimbatore District Bank Employees Association (CDBEA) the number of defaulters'above Rs 1 crore number 167 in this district and the amount totalled Rs1, 230.01 crore, as against the State's total of Rs 8, 554.99 crore of 1, 593 accounts.
Diamond Jubilee Co-op runs into rough weather
Ahmedabad: Yet another cooperative bank, this time from the diamond city, seems to have folded up, buttressing fears that quite a few co-operative banks in Gujarat are set to run into rough weather in the coming days.
Managing cash is as good as making it
Mumbai: In desperate need of money; stuck with an out-station cheque with clearance only in 15 days? The solution: cash management services provided by nearly all major banks. But cash management services are not only about encashing out-station cheques.
RRBs and the Rao panel: will the story change now?
New Delhi: It is official now. The Chalapathi Rao Committee set up for the revival of regional rural banks has recently submitted its report to the Centre. The report has recommended a complete makeover in the RRB structure.
Inter-bank market sees more open market operations
Mumbai: With the Reserve Bank of Indias surprise open market operation sales on Saturday getting over-whelming response, market expectation is that there could be another round of OMOs if the 10-year benchmark yield again dips sharply.
Recapitalisation bonds mooted for IFCI bailout
New Delhi: The government is considering issue of recapitalisation bonds to bail out the ailing IFCI Ltd, but the amount will depend on the shortfall required to be met after banks and other creditors have chipped in with their bit. Diamond Jubilee Co-op Bank downs shutters
Ahmedabad: The Surat-based Diamond Jubilee Cooperative Bank (DJCB), with a deposit base of Rs 169 crore, has closed shutters. The Reserve Bank of India (RBI) has suspended the clearing operations at all the branches of DJCB. The cooperative bank, which had reportedly been witnessing a run on its eight branches in Surat for the past few days, is reported to have exposed itself heavily to the real estate industry. Out of the total advances of Rs 130 crore, a real estate developer, C R Patil, who is also the chairman of Gujarat Alkalies and Chemicals, alone had a loan portfolio of Rs 42 crore from the bank. Sources in Surat say the exposure, through Patils associates, is much higher at nearly Rs 75 crore. The depositors of the bank have charged the state government and the RBI with shirking their responsibility in the cooperative bank scams by passing the buck to each other. Many healthy cooperative banks were coerced into infusing low interest funds into MMCB, whose branches are up and running once again.
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