Bank of Baroda takes over Memon Cooperative Bank

By | September 19, 2010

PSU lender, Bank of Baroda has taken over the troubled Memon Cooperative Bank based in Mumbai. The bank would be buying certain assets and liabilities of the cooperative bank.

It has already received approval from Central Government and Reserve Bank of India. BoB will draw up a plan suitable for the buyout and also receive authorizations from other necessary authorities.

The operations of Memon co-op bank were halted by the RBI last May due to charges of mismanagement and fraudulent staging of accounts.

The bank was charged for making false balance sheets for years 2006, 2007 and 2008 showing profits of Rs 13.34 lakh, Rs 5.95 lakh and Rs 5.77 lakh respectively while RBI audit inspection observed the bank to have actually made losses worth Rs 128 crore, Rs 161 crore and Rs 118 crore in those 3 years.

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