Consider to merge Adoor Co-op bank with Kottayam Co-op Bank : AIBEA

Hyderabad: All India Bank Employees’ Association (AIBEA) urged Reserve Bank of India (RBI) Governor Shaktikanta Das to consider the proposal of merging Adoor Cooperative Urban Bank with Kottayam Cooperative Urban Bank in Kerala. In a letter to Mr Das on Thursday, a copy of which was sent to UNI on Friday, AIBEA General Secretary Ch Venkatachalam said looking at the financial condition of Adoor Co-operative Urban Bank, RBI had imposed restrictions in November last year and these restrictions had been continued and extended from time to time. These restrictions will end on March 9, he said. In the meanwhile, he said, RBI asked the Bank to explore the possibilities to merge it with some other urban bank and also to suggest the name of such urban banks who can takeover Adoor Co-operative Urban Bank Limited. The Managing Committee of the Bank which met on April 12, 2021 had consented to merge the Bank with Kottayam Co-operative Urban Bank and the same was communicated to RBI. Consequent to the above, the process of merger went ahead as per Master Directions dated March 23, 2021(Amalgamation of Urban Cooperative Banks Direction 2020). Mr Venkatachalam said General Body Meetings of share holders of Kottayam Co-operative Urban Bank and Adoor Co-operative Urban Bank were held and in both the meetings the decision to merge and scheme of amalgamation were approved unanimously. In the month of September 2021, the same was communicated to RBI, the top union leader said, the No Objection Certificate from Registrar of Co-operative Societies was also submitted to Reserve Bank of India. Since Kottayam Co-operative Urban Bank is willing to take over Adoor Co-operative Urban Bank and the necessary formalities as prescribed by the RBI have been complied with, we appeal to you to consider the proposal favourably and issue necessary notification in this regard, he added. UNI CS1504

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