KOCHI: The LDF Government’s showpiece project to set up Kerala Bank by merging all the 14 District Cooperative Bank (DCB) with the Kerala State Cooperative Bank (KSCB) has moved one step closer towards realisation with the National Bank for Agriculture and Rural Development (Nabard) headquarters in Mumbai giving its findings on the proposal to the Reserve Bank of India (RBI).
“Malappuram DCB, controlled by the Indian Union Muslim League-led UDF, which voted against the merger in March, also has a change of mind and is now showing interest in merging with other DCBs,” said Cooperation Minister Kadakampally Surendran.
“Nabard had sent its remarks on the Kerala Bank proposal to the RBI around three to four days ago. I’m not privy to the report. But, I would like to think the Nabard’s remarks would be in favour of our proposal to form the Kerala Bank,” Surendran told Express. He said the state government was fully geared up to establish the Kerala Bank as soon as it receives the RBI approval.
“Nabard has prepared its findings after inspections and due diligence. We are fully confident that it would be a positive report in our favour,” he said.
Mini Antony, secretary, Department of Cooperation, said RBI will verify the documents submitted by the Nabard and take the final decision. She said all other systems, including the different software being used at DCBs, can be sorted out at the earliest once the RBI gives its approval.
The Kerala Bank, which when established will have the state’s largest banking network, was one of the major promises of LDF when it came to power in May 2016.
Surendran said the leaders of Muslim League which controls the Malappuram DCB were positive towards setting up Kerala Bank during his interactions with them. “I have also received a memorandum signed by all the 400 employees of Malappuram DCB stating they want to be a part of the Kerala Bank, and the DCB to be merged into the proposed Kerala Bank,” he said.
All the other 13 DCBs had earlier voted in favour of the merger with KSCB to form the Kerala Bank. When the proposal was put to vote in March this year at Malappuram DCB, only 24 per cent of the votes went in favour of the merger. The change of mind of the Malappuram DCB may also work in favour of the government when RBI considers the proposal.
Change of mind
All the other 13 DCBs had earlier voted in favour of the merger with KSCB to form Kerala Bank. When the proposal was put to vote in March this year at Malappuram DCB, only 24 per cent of the votes went in favour of the merger. However, the change of mind of Malappuram DCB may also work in favour of the government when RBI considers the proposal