MUMBAI: Bank of Baroda on Tuesday said it has decided to takeover some asset and liabilities of the city-based Memon Cooperative Bank.
Approval of government and Reserve Bank of India has been received for the purpose, Bank of Baroda informed the Bombay Stock Exchange.
The bank will formulate a scheme for the take over which will be subject to further approvals of the appropriate competent authorities, it said.
Memon Cooperative Bank has 18 branches across Maharashtra and Gujarat.
RBI, the banking sector regulator, had suspended the operations of the cooperative bank in May last year owing to poor financial health.
RBI allows takeover of urban co-operative banks in consultation with the state government, as they are jointly regulated by the central bank and the registrar of cooperatives.
For the year ended March 2010, Bank of Baroda posted a net profit of Rs 3,058.33 crore registering an increase of 37.32 per cent over the previous fiscal.
Total income rose to Rs 5,120.7 crore for the quarter ended March 31, 2010, from Rs 4,992.4 crore in the same period last fiscal.
On a year-on-year basis, total business of the bank increased by 24 per cent to Rs 4,16,080 crore. While total deposits increased by 25.2 per cent to Rs 2,41,044 crore, total advances increased by 22.2 per cent to Rs 1,75,035 crore in FY10.
Gross NPAs of the bank have increased by Rs 558 crore to Rs 2,400.69 crore as on March 2010 from Rs 1,842.92 crore in the previous year, reflecting a slow adjustment of Indian industry.
Courtesy : The Economic Times
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