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Co-op banks join hands to save Madhavpura

BS Regional Bureau

The Ahmedabad City and District Cooperative Banks' Association , which has leading cooperative banks in the city as its members, has formed a high-level committee to seek assistance from the Union and state governments to revive the crisis-hit Madhavpura Mercantile Cooperative Bank.

The association is confident of reviving Madhavpura Bank if the state and Central government extend their support in terms of government securities and interest-free loans to the tune of around Rs 2 billion, according to sources.

A couple of cooperative banks, which are members of the association, had expressed their willingness to take over or merge with Madhavpura bank if such official support was forthcoming, the sources added.

The committee members are learnt to have sought a meeting with Gujarat Chief Minister Keshubhai Patel to explain to him the proposal and seek the state government's help in the matter. If the response from Patel is positive, they plan to approach the Union finance minister for Central assistance.

Terming the crisis at Madhavpura as a calamity for the state's cooperative banking sector, a committee member said, "If Madhavpura is liquidated, it would have a cascading effect and a few other cooperative banks would also go down with it."

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