Bank of Baroda to take over assets of Memon Cooperative Bank

Bank of Baroda to take over assets of Memon Cooperative BankLeading lender of India, Bank of Baroda (BoB) has announced that it has decided to go for an asset takeover of Memon Cooperative Bank. In a statement, BoB has said that bank will take over selected assets and liabilities of the Mumbai based Memon Cooperative Bank which is dealing with several troubles at present. For this purpose, BoB has already received the approval of the Central government and the Reserve Bank of India.

However, for this purpose, the bank has to come across several other formalities. The appropriate authorities will also have to approve the takeover scheme.

So far as Memon Co-operative Bank is concerned, in May, 2009, the banking regulator had suspended all operation of the bank.

The loss of the firm has gone up to its extreme level and the regulators have alleged that there has been number of falsification of accounts along with some severe mismanagement.

Though the bank had shown a profit in its balance sheet for the years 2006, 2007 and 2009 but actually it was suffering with huge loss for the same period of time.

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