KILLING MARATHI BANKS : BY RULES
United Western Bank – “Aapulki na Waghnari Mansa” (people who behave with oneness). This Maharashtrian bank was established with this motto and it still works accordingly. Even though financial restrictions have been imposed on the bank by RBI, still the bank has not withered away from its principals. United Western is one of the most prominent banks from Western Maharashtra and has the widest network in this area. This bank covers rural & urban areas alike. Valuable customers of this bank include Big Industrialist, Universities, Municipal Corporations and even small, poor peasants all over Maharashtra.
RBI on 1st September 2006 suddenly imposes economic restrictions on the daily working of the bank. Without considering anybody’s reaction RBI immediately started searching for a Merger Option for this Bank. “Federal Bank” (South Indian Origin) conducted Special High Level Meeting to discuss & finalise the offer to take over UWB. The interesting fact is this meeting was held prior to RBI declaration about the restrictions. ( Source : Daily Pudhari , Sakal ). Also interesting is that this same bank Took over “The Ganesh Bank of Krundwad” – Another Marathi Bank. This acquisition was questioned upto Supreme Court of India.
The point we want to raise here is that RBI & Central Govt. is slowly killing the Marathi banks in favour of South Indian Banks. The present UWB case has strengthen this belief of our. Currently quite banks such as ICICI Bank, Union Bank of India, Saraswat Bank etc. are lined up for the take over of UWB. What we are concerned is how Federal Bank drafted a proposal for take over long before the imposition of restrictions. Also the reason mentioned for these restrictions are losses to the bank. But this reason is not sufficient enough to declare a merger or take over against a Bank. The actual picture with the Bank seems to be contrary. We will take example of UWB branches at Kolhapur
The next day of the announcement of restrictions, quite a few customers of the Bank still believed in well working of the establishment and didn’t rush to withdraw. However some clients of the bank did line up at the Cash Counters of various branches. Every customer who claimed for funds did actually receive the same with much trouble. There was no Chaos or Restlessness amongst the customers. This incident is very encouraging on Part of bank and questioning the intention of RBI. To the extent of their motto, even in such situations the Bank Employees behaved to their best with the crowds which came to claim their holdings. One of the branches arranged for shade for people lined up in afternoon sun, provided cold drinking water and the Manager himself distributed bananas amongst those standing in long hours. Ten cash counters for payments were opened for convenience of people.
When one branch of UWB has approximately 4 crores rupees of daily transaction and the main branch of ICICI in the same city does approx. 1 crore a day, Does this bank require a merger?
Reacting acutely towards the restrictions, Maharashtra Government requested SICOM – a finance company, to assist United Western in facing the situation. The RBI replied in style to this move. A letter directing the bank to provide a detail plan for reconstruction has been issued to UWB on 5th September at 7.00 p.m. And the deadline for submitting the said plan is given 7th September by 10.00 a.m. Note worthy is the fact that the notice was issued after closing time on 5th, 6th is Anant Chaturdasi ( Celebrated in Maharashtra & usually declared local holiday) and the report must reach before opening time on 7th. We wish to know why such a limited and pratically impossible deadline to such a reputed and well behaved bank.(Source Daily Sakal)
Coming back to the Title of the article, RBI seems to be biased in merging all major Marathi Banks and full chance that they will be handed over to some South Indian Bank. We don’t see any of regional political parties concerned about this approach towards capturing the banking business of this fertile and income generating area of South Maharashtra. The Finance Minister at centre also does seem to be much interested in prosperity of Maharashtrian Banks, rather he is more interested in well being of the South Indian Banks.
We also blame South Indian Banks for this, primarily because since the business down there is not as good as in these areas, they have found an easy way to get the business under the shade of RBI. The actual way should be competing with local banks on grounds of service and facilities but rather they have started eating the pre-established banks.
Our claim will be strengthened further if at all UWB is handed over to any South Indian Bank instead of other strong Marathi Bank. There is need of public agitation on large extent to oppose this irrational and irresponsible behaviour of RBI and the Central Government. We propose a method of reacting that every person in favour of Maharashtra and its heritage should at least write a letter to RBI asking against the merger of any Marathi Bank to a non-Marathi bank. The more the number of letters the more pressure on RBI.
WAKE UP PEOPLE or as they say in Marathi – “Marathi Mansa Jaaga Ho!”
About The Author : Adv. Amitkumar S. Despande is a practicing advocate at Kolhapur. He has attended Seminars on various topics. Also has presented papers at couple of National Conferences
RBI on 1st September 2006 suddenly imposes economic restrictions on the daily working of the bank. Without considering anybody’s reaction RBI immediately started searching for a Merger Option for this Bank. “Federal Bank” (South Indian Origin) conducted Special High Level Meeting to discuss & finalise the offer to take over UWB. The interesting fact is this meeting was held prior to RBI declaration about the restrictions. ( Source : Daily Pudhari , Sakal ). Also interesting is that this same bank Took over “The Ganesh Bank of Krundwad” – Another Marathi Bank. This acquisition was questioned upto Supreme Court of India.
The point we want to raise here is that RBI & Central Govt. is slowly killing the Marathi banks in favour of South Indian Banks. The present UWB case has strengthen this belief of our. Currently quite banks such as ICICI Bank, Union Bank of India, Saraswat Bank etc. are lined up for the take over of UWB. What we are concerned is how Federal Bank drafted a proposal for take over long before the imposition of restrictions. Also the reason mentioned for these restrictions are losses to the bank. But this reason is not sufficient enough to declare a merger or take over against a Bank. The actual picture with the Bank seems to be contrary. We will take example of UWB branches at Kolhapur
The next day of the announcement of restrictions, quite a few customers of the Bank still believed in well working of the establishment and didn’t rush to withdraw. However some clients of the bank did line up at the Cash Counters of various branches. Every customer who claimed for funds did actually receive the same with much trouble. There was no Chaos or Restlessness amongst the customers. This incident is very encouraging on Part of bank and questioning the intention of RBI. To the extent of their motto, even in such situations the Bank Employees behaved to their best with the crowds which came to claim their holdings. One of the branches arranged for shade for people lined up in afternoon sun, provided cold drinking water and the Manager himself distributed bananas amongst those standing in long hours. Ten cash counters for payments were opened for convenience of people.
When one branch of UWB has approximately 4 crores rupees of daily transaction and the main branch of ICICI in the same city does approx. 1 crore a day, Does this bank require a merger?
Reacting acutely towards the restrictions, Maharashtra Government requested SICOM – a finance company, to assist United Western in facing the situation. The RBI replied in style to this move. A letter directing the bank to provide a detail plan for reconstruction has been issued to UWB on 5th September at 7.00 p.m. And the deadline for submitting the said plan is given 7th September by 10.00 a.m. Note worthy is the fact that the notice was issued after closing time on 5th, 6th is Anant Chaturdasi ( Celebrated in Maharashtra & usually declared local holiday) and the report must reach before opening time on 7th. We wish to know why such a limited and pratically impossible deadline to such a reputed and well behaved bank.(Source Daily Sakal)
Coming back to the Title of the article, RBI seems to be biased in merging all major Marathi Banks and full chance that they will be handed over to some South Indian Bank. We don’t see any of regional political parties concerned about this approach towards capturing the banking business of this fertile and income generating area of South Maharashtra. The Finance Minister at centre also does seem to be much interested in prosperity of Maharashtrian Banks, rather he is more interested in well being of the South Indian Banks.
We also blame South Indian Banks for this, primarily because since the business down there is not as good as in these areas, they have found an easy way to get the business under the shade of RBI. The actual way should be competing with local banks on grounds of service and facilities but rather they have started eating the pre-established banks.
Our claim will be strengthened further if at all UWB is handed over to any South Indian Bank instead of other strong Marathi Bank. There is need of public agitation on large extent to oppose this irrational and irresponsible behaviour of RBI and the Central Government. We propose a method of reacting that every person in favour of Maharashtra and its heritage should at least write a letter to RBI asking against the merger of any Marathi Bank to a non-Marathi bank. The more the number of letters the more pressure on RBI.
WAKE UP PEOPLE or as they say in Marathi – “Marathi Mansa Jaaga Ho!”
About The Author : Adv. Amitkumar S. Despande is a practicing advocate at Kolhapur. He has attended Seminars on various topics. Also has presented papers at couple of National Conferences
posted by Kolhapur World at
12:13 PM
3 Comments:
I am a customer of this bank and hereby express complete confidence in the working of this bank. This confidence has been derived from the association with this bank since the last two generations. I strongly condemn the steps taken by RBI.
By
Anonymous, at Thursday, September 07, 2006 7:01:00 AM
To be frank i havent banked with united western and i have no experience with it. But the article written here does not relate the merger to the balance sheet of united western. It dosent talk how healthy the bank is or if it is really pushing into profits, though it talks about daily transactions. I also see a total disconnect in blaming the Finance minister for promoting south indian banks (Although i abhor him for making me pay more taxes). This bank is from kerala and chidambaram is from sivaganga, he does not gain even a single vote by supporting this bank (He could have been bribed and that is a different issue). Well i dont understand why a divide is being germinated between south indians and the north (not to mention that maharastra is central). Did you ever wonder where the rice you eat came from or the leather you use came from. Or did south indians think why wear kolhapuri slippers (I love it anyways) or did they oppose sugar from maharastra ? Do you know that south Indian states pay the maximum income tax ??? I firmly believe that all indians are still the same. I studied in kolhapur even though i belong to the south. I feel that such hatred should be stopped. Why cant we think of a cosmopolitan kolhapur ? Where people from different states converge. A global economy will flow and it will be the marathis who will benifit from this. ! JAI HIND !
By
Anonymous, at Thursday, September 07, 2006 12:08:00 PM
have you even heard of Global Trust Bank????
don't spoil kolhapur's name by writing such articles on "Kolhapur World"
By
Anonymous, at Thursday, September 07, 2006 11:30:00 PM
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