The Hindu Business Line : Visakha Co-op Bank to take over another bank

The Visakhapatnam Urban Co-operative Bank is planning to take over Ramachandrapuram Co-operative Bank in East Godavari district, according to Mr M. Anjaneyulu, the Chairman.

He said in an interview on Sunday that the consent of the RBI was awaited for the takeover and he expressed the confidence that it would be given in view of “the excellent performance of the Visakha Co-op Bank.”

Long stint

Mr Anjaneyulu, who completed 25 years as Chairman, said that in 1983, when he assumed charge, the share capital of the bank was Rs 8 lakh with a membership of 2,873 and it had risen to Rs 23.79 crore and 34,462 respectively.

“From a single branch then, it has now grown to 13 branches and an extension counter. It has now deposits of Rs 385 crore and advances of Rs 279 crore. We hope to touch the Rs 1,000-crore business mark by the end of March, 2009,” he said.

Mr Anjaneyulu said the bank had taken over Bobbili Co-operative Bank in November, 2007, and thus extended its operations to Vizianagaram and Srikakulam districts.

Torrid time

Though the bank had to go through a torrid time in 2003, over the controversy involving depositing surplus funds in Vasavi and Prudential Banks which subsequently turned bankrupt, he said the Visakhapatnam Co-op Bank could come out of it successfully as the depositors showed great faith in the bank.

Though there were panic withdrawals of Rs 60 crore, the bank could weather the storm, he added.

‘No politicking’

One of the reasons for the success of the bank, he said, was that he did not allow politics to influence his decisions, though he belonged to the CPI party.

“The main reason for the failure of many co-op banks is lack of professional management. Otherwise, they can stay in the market and compete with others,” he opined.

More Stories on : Mergers & Acquisitions | Co-operatives | Andhra Pradesh

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