Tough challenge ahead for Kerala Bank

It is not easy for the government to secure two third majority for the merger proposal in more than five DCBs,” said VD Satheesan MLA.

Published: 30th December 2018 06:24 AM  |   Last Updated: 30th December 2018 06:24 AM   |  A+A-

By Express News Service

THIRUVANANTHAPURAM: While the cooperative department has finalised the MoU to be signed between the stakeholders for the proposed Kerala Bank, the opposition raised by banks where the UDF has an upper hand is posing a challenge for the merger plan.

The MoU is to be signed between the state cooperative bank, district cooperative banks and the government. The government is making every effort to convince the members of five DCBs where the UDF has an upper hand.

The RBI had asked the government to ensure two-third majority in the general body meeting of DCBs to approve the merger plan. The members who have to support the merger plan are primary agricultural cooperatives under the DCB. In the DCBs at Kasargod, Malappuram, Wayanad, Ernakulam, Idukki and Kottayam the merger plan is unlikely to get the support of the general body. While speculations are rife that the government would go ahead with the merger plan even without the participation of these five banks, Cooperation Minister Kadakampally said the government is hopeful of the support of all stakeholders.

“The government does not plan to exclude any of the DCB from the merger. The Kerala Bank will be formed as per the original plan,” he said. 

Meanwhile, the Opposition UDF is in no mood to relent. “The merger plan is a unilateral decision of the state government against the interests of the stakeholders. It is not easy for the government to secure two third majority for the merger proposal in more than five DCBs,” said VD Satheesan MLA.

“A merger between the loss-making state cooperative bank and successful DCBs will result in the destruction of the latter. We want to retain the three-tier cooperative system,” he added.

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