Our Banking Bureau

Mumbai, April 11: DENA Bank has lent Rs 5 crore to the ill-fated Madhavpura Mercantile Co-operative Bank (MMCB) in call money. Said Dena Bank’s chairman and managing director, AG Joshi: “We have lent Rs five crore to the Madhavpura Mercantile Co-operative Bank as call money.“

“And we have got government securities worth Rs five crore against this lending. Madhavpura Bank also has deposits worth of Rs 2.5 crore with us. We have already taken all deposits from the bank. Another Rs 2.5 crore will be realised by selling securities to the RBI.”

Mr Joshi also stated that the bank does not have more exposures to co-operative societies as well as in the capital market. For the time being, the bank has stopped lending in the call money market to co-operative banks. On the recovery of NPA front, Mr Joshi said that the bank has recovered Rs 11 crore till March 31, 2001 and Rs 30 to Rs 40 crore is in the pipeline. As the date for one-time settlement is extended for the next three months, the bank expects very good response to this scheme.

Mr Joshi was speaking on the occasion of inauguration of its industrial finance branch and 165th multi-branch banking branch in Mumbai. Mr Joshi said that the facility will mainly benefit retail customers enabling them to access their accounts from different centres.