Click to play videoMumbai: The Reserve Bank of India (RBI), in a letter, has asked the United Western Bank to submit bid for Rs 350 crore capital infusion. The bank has also given a deadline until Thursday morning to bid for UWB.
While amalgamating with a bank will be safe for depositors, giving SICOM a chance to bring capital will bring shareholders relief.
Meanwhile, in an exclusive report CNN-IBN finds out that the bank did not take an active interest in recovering loans of two entities.
The Makharias play three roles in the collapsed United Western Bank. That of shareholders, directors and also that of one of its biggest defaulters. Though they own 1.72 per cent equity in the bank and have two nominees on its board, they have also defaulted on close to Rs 56 crore to the bank.
Now you would normally expect the bank to be pursuing the family to pay up. But in this draft rights issue offer letter to SEBI filed in August 2005, the bank admits that it has not yet taken any active steps to recover these dues.
The Makharias dues are through two entities. Emtex industries that owes about Rs 50 crore and Maliram Makharia stockbrokers that owes almost Rs 6 crore. While Emtex's loans have been classified as doubtful, Maliram Makharia stockbrokers' has been declared a loss.
In 2002, the bank signed an MOU with defaulter borrowers.
Emtex and Maliram Makharia stock brokers. While Emtex went to BIFR and got declared a sick entity, Maliram Makharia stockbrokers had to pay up after a DRT order way back in 2003.
However, Shivprasad Makharia did not respond to an email sent to him.
With inputs from Bikas Mishra
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