Canara Bank is conducting “due diligence” of the beleaguered Amanath Cooperative Bank, considering a possible takeover, said R.K. Dubey, chairman and managing director of Canara Bank on Saturday.
Speaking on the sidelines of a media conference convened to announce the bank’s financial results, Mr. Dubey said, “The due diligence process is expected to be completed in 15 to 20 days.”
Asked if Canara Bank is under pressure to take over the cooperative institution, Mr. Dubey said, “We are aware of its problems, but somebody has to bail it out.”
Asked whether the bank, which has been slapped with a moratorium by the Reserve Bank of India against allowing withdrawals of more than Rs. 1,000 by depositors, would not become a burden, Mr. Dubey said, “Of course, we are aware of the moratorium by the Central bank, but we will also consider other factors, including how many (loan) accounts are secured, before we take a decision on the matter.” He said he was aware the cooperative bank was saddled with “some NPAs”. “But we are also aware that the institution has a network of 16 metropolitan branches and ATMs,” he added.
