Daman and Diu State Cooperative Bank seeks addl capital

PANAJI: Goa State Co-operative

Bank

(

GSCB

) may have bifurcated its

banking

operations from the Daman and Diu State Cooperative Bank on April 1, 2017, but the Daman and Diu State Cooperative Bank will have to wait a little longer to receive its banking

licence

from the Reserve Bank of India (RBI). Senior officials from both the banks said that the Daman and Diu State Cooperative Bank needs additional share capital in order to meet RBI’s capital to risk weighted assets ratio (CRAR) norms.


Speaking to TOI, chairman of the Daman and Diu State Cooperative Bank Rameshbhai Bamania said that RBI and Nabard have recommended that the Union territory administration of Daman and Diu should infuse funds to help the cooperative bank meet the 9% CRAR norm.

“Our CRAR is presently 3%, but our profits are going up, so we are confident that we can get the banking licence by March 2021 or even earlier,” Bamania said.

Bamania said that he met RBI and Nabard officials in Mumbai on May 24 where they recommended additional share capital infusion. “We have already got Rs 10 crore as share capital, but RBI said that more share capital is required,” he said.

In March 2017, the RBI-appointed task force committee to oversee the bifurcation of GSCB from its Daman and Diu operations had asked Goa’s apex cooperative bank to maintain separate balance sheets. The move was implemented from April 1 as a precursor to the formal bifurcation of banking operations between GSCB and Daman and Diu State Cooperative Bank.

Currently, the Daman and Diu State Cooperative Bank has been designated as the apex financing institution of Daman and Diu, but needs to obtain a banking licence to function as a full-fledged bank.

Chairman of the committee of administrators of GSCB, P V Prabhu Verlekar told TOI that Daman and Diu State Cooperative Bank could receive its banking licences as soon as its profitability increases.


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