Public sector lender, Bank of Baroda has come to the rescue of the troubled Memon Cooperative Bank located in Mumbai. The lender would be acquiring selected assets and liabilities of the cooperative bank.
Approval from Central Government and Reserve Bank of India have already been obtained by BoB. The bank will design a scheme apt for the takeover and also gain approvals from other required authorities.
The operations of Memon co-op bank were ceased by the RBI last May on charges of mismanagement and fraudulous presentation of accounts.
Charges were put against the bank for preparing falsified balance sheets for years 2006, 2007 and 2008 depicting profits of Rs 13.34 lakh, Rs 5.95 lakh and Rs 5.77 lakh respectively whereas RBI audit inspection found the bank to have actually accrued losses worth Rs 128 crore, Rs 161 crore and Rs 118 crore during the three respective years.