The Karnataka High Court on Thursday asked the Reserve Bank of India to clarify its stand on the two conditions imposed by it for the merger of loss-making Amanath Cooperative Bank with the Canara Bank.
Justice Ram Mohan Reddy issued the direction while hearing petitions on the merger proposal. The RBI, in its June 4, 2014 communication, had imposed the condition that Canara Bank should not suffer any loss due to the merger, and the depositors of Amanath Bank should be prepared to bear some loss due to the financial status of the bank.
Canara Bank counsel said the bank will suffer loss due to the merger.
