Latest


Mangalore: RBI withdraws supervisory restrictions on MCC Bank

  •   Sat, Aug 31 2013 11:05:01 AM

Mangalore: RBI withdraws supervisory restrictions on MCC Bank

Daijiworld Media Network - Mangalore

Mangalore, Aug 31: In what can be termed as good news to the management of Mangalore Catholic co-operative Bank Ltd (MCC) lacs of its customers, the Reserve Bank of India (RBI) has withdrawn the supervisory restrictions imposed on the bank in March 2009.

In a letter dated August 19, 2013 the Reserve Bank of India has stated that the Supervisory Restrictions imposed on the bank are as treated as withdrawn. This was in response to the letter written by the Bank to the RBI requesting withdrawal of the restrictions.

It may be recalled that the RBI had imposed a penalty of Rs 5 lac on MCC bank for the irregularities committed during the period of the earlier management. It had also asked the bank to fix accountability on the staff/directors responsible for the violations in Investment Operations and furnish action taken report to the RBI. Enquiry to bring to book those responsible for the irregularities, is still on.

The RBI had assessed the bank accounts in December 2007 and had detected MTM losses to the tune of Rs 37.25 lac and other irregularities during the management of earlier regime of MCC bank. The RBI had viewed these irregularities in Non-SLR Securities transactions seriously and had put an embargo on its branch expansion, opening of ATMs and extension counters, grant of permission of AD category I/II license. There was also an embargo on the bank undertaking insurance/mutual fund business for a period of three years.

Speaking to daijiworld.com Chairman of MCC Bank Melvyn D Cunha expressed his happiness over the withdrawal of these restrictions by RBI and pointed out that the Bank had made tremendous progress in the last five years after his team was elected to take control of the management. He said, “These restrictions were like a major hurdle in our efforts to chalk out any growth plans. Despite these stringent restrictions the bank was able to have a turnover of over Rs 426 crore in the last five years. This was possible because we were able to streamline the administration.”

He expressed confidence that the current economic situation notwithstanding, the bank will be able to go on an expansion spree and make rapid progress in the coming years.

 

From Daijiworld Archives:
  

Top Stories

Comment on this article

  • naveen fernandes, MANGALORE

    Tue, Sep 03 2013

    happy to know that bennet d'silva prop bens electricals is contesting for MCC bank election.keep it up bennet. you r a sure winner......

    DisAgree Agree Reply Report Abuse

  • Valentine D'Silva, B.A., LL.B., D.B.A., & I.M., Mangalore

    Tue, Sep 03 2013

    It is really painful that the present management made certain allegations that the previous management has committed certain irregularities and a fine of Rs 5,00,000 was imposed on the MCC Bank and previous Directors are responsible for the violation and certain restriction were imposed by the R.B.I. because of this.

    Infact I was the Chairman of the MCC Bank from the year 1991 to 2008 and every year the R.B.I. inspection was conducted during my tenure. And no adverse remark were made either on the Management and the Staff. Only after 2008 when the present Management came into the Board certain irregularities were pointed out for which present management was unable to give satisfactory clarification for those queries.

    Even after that the present Management neither called us to give clarification for the queries placed by the R.B.I. during inspection. Rather than that the Managing Committee filed a case against the previous Management before the Joint Registrar of Co-operative Societies Bangalore alleging that previous Management was responsible for the the loss of 38,00,000/- for the Bank and it has to be recovered from them and also made other allegations and wanted to prevent us from participating in any activities of the Bank in future.

    However Joint Registrar of Co-operative Societies Bangalore in its proceedings No. 1/167/enquiry/2009-10 in its order dated 22/06/2013 dismissed the case filed by the present Management of M.C.C. Bank against us by exonerating us from all the charges alleged against us. And it was clearly held that the previous Management is not responsible for any of the irregularities alleged by the present Management Committee.

    DisAgree Agree [3] Reply Report Abuse

  • BRAYAN DSOUZA, MANGALORE

    Mon, Sep 02 2013

    Cheer to MCC Bank. Good news from RBI keep it up. Glad to know young candidate like Benet Dsilva are contesting the bank election. Infuse young blood.Keep it up.

    DisAgree [1] Agree Reply Report Abuse

  • vincent fernandes-mogachi lahran, cascia/dubai

    Sun, Sep 01 2013

    Congrats Melwyn for your good efforts to upgrade our Bank to this level. All the best and good to you and ur team

    DisAgree [3] Agree [3] Reply Report Abuse

  • Fredrick DSouza, Shirthady/Qatar

    Sun, Sep 01 2013

    Congratulations dear Melwyn and the whole management. The way is opened for the real progress for the bank. The sheer efforts and hard work of this team achieved this tremondous result. Wish this team many more terms.
    Fredrick

    DisAgree [4] Agree [6] Reply Report Abuse

  • juliet mascarenhas, bejai mangalore

    Sun, Sep 01 2013

    Whatever irregularities committed by the bank has to be rectified within the prescribed time.Had the earlier management continued they too would have striven for the withdrawal of the supervisory restrictions imposed. The restriction was imposed in March 2009 stands withdrawn as per letter dated 19.08.2013 in response to the letter written by the bank to RBI requesting withdrawal of the restriction.Anyway the Bank has done this before the BOD elections though late.

    DisAgree [4] Agree [4] Reply Report Abuse

  • JN, Bejai

    Sat, Aug 31 2013

    Congratulations!

    Hope new management will start anew program for NRI'S once restarted NRE facility.
    One lac deposit program will succeed since our NRE community is very strong and why should our community money deposited in other Banks?I will be the first person to support the NRE program.

    DisAgree [6] Agree [20] Reply Report Abuse

  • Valerian Dsouza, Udupi/Mumbai

    Sat, Aug 31 2013

    Impositions of restrictions by RBI when things were NOT right and withdrawal of restrictions when things fell in line should be lauded in the overall interest of Well wishers of the Bank. Congrats MCC Bank's present Mgmt. who worked hard to restore the trust of RBI, the regulatory of the Banks.

    DisAgree [13] Agree [41] Reply Report Abuse

  • oswald, mangalore

    Sat, Aug 31 2013

    good move by RBI.

    DisAgree [15] Agree [33] Reply Report Abuse

  • Vivian D'Souza, Mangalore/Dubai

    Sat, Aug 31 2013

    Congratulations to Melwyn D'Cunha,
    the Chairman and all the Directors of MCC Bank Ltd.Its really a good news to all the shareholders of the
    MCC Bank.

    DisAgree [24] Agree [34] Reply Report Abuse

  • WALTER MONTEIRO, BELMAN/ABUDHABI

    Sat, Aug 31 2013

    Congrats Melwyn for your good efforts to upgrade our Bank to this level. All the best and good to you and ur team

    DisAgree [21] Agree [42] Reply Report Abuse


Leave a Comment

Title: Mangalore: RBI withdraws supervisory restrictions on MCC Bank



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.

You might also like