- Dhanvarsha Group to organize National Cooperative Banking Summit in India on Early Next Year.
- The Cooperative Banking sector needs a New Stock Exchange to meet the financial requirements and significantly benefit the Struggling Urban Cooperative Banks.
New Delhi/Mumbai/Goa, November 30, 2021
A financial wizard, Anshumman Joshi, has emerged as the saviour of cooperative banking in the country. He has been spearheading a movement to revive sick urban cooperative banks (UCBs) with resources and his expertise in the sector. As the Chairman of Dhanvarsha Group, Joshi is making all efforts to bring together all stakeholders of the cooperative industry on one collaborative platform to restructure and revive the system. To meet the challenges of the new age, Joshi would be
Appreciating the Union Government and especially the Union Cooperative Minister for enacting the Banking Regulation Act 2020, Amit Shah said, “The Act and its provisions of the cooperative banking sector would play a catalyzing role in transforming it into the most vibrant banking system in the country.”
Dhanvarsha Group’s investors would infuse Share Capital through its investment fund. It would also be interested in converting Multi-State Scheduled Banks to Small Finance Banks as per the RBI norms for converting the UCBs to Small Finance Banks, said Anshumman Joshi, Chairman, Dhanvarsha Group.
Dhanvarsha Group is all set to leverage the provisions made in the Banking Regulation Act 2020, which allows under Section 12 to a co-operative bank, with the prior approval of the Reserve Bank, issue, to raise money through public issue or private placement. They can also raise money through equity, preference, or special shares, at face value or a premium. Moreover, provisions like unsecured debentures or bonds, or other securities with an initial or original maturity of not less than ten years can provide much financial support to the cooperative banking system in the country.
To provide momentum to the cooperative banking movement in the country, Dhanvarsha Group plans to organise a day-long National Cooperative Banking Summit in India Early Next Year Hon’ble Union Cooperative Minister Shri Amit Shah, key policymakers, cooperative bankers, investors, Regulatory experts, and other stakeholders are expected to participate in the Summit. India aspires to become a USD 5 trillion economy by 2025 and USD 10 trillion by 2030.
“If the cooperative sector is reformed, it has potential to help in achieving these targets before the set timeline. The Summit would also highlight the need for a New Stock Exchange for Cooperative Banks. A stock exchange would meet the financial requirements and offer significant benefits to the Struggling Urban cooperative banks. Several cooperative banks are facing liquidity crises and huge NPAs. These banks need an infusion of money and bad assets should be given to Asset Reconstruction Companies. In these spaces, Dhanvarsha Group has the expertise to bring in key shareholders together and initiate the process of revival,” said Joshi.
Dhanvarsha Group is all set to revive sick cooperative banks in the country. In a letter to the Finance Secretary, Joshi has urged the Union Government to revoke the suspension of the license of Mapusa Urban Co-operative Bank of Goa and the liquidation process currently underway to stay. The Group has offered a revival package, and the Group urged that its proposal be considered sympathetically in the larger interest.
“We have learnt that the Mapusa Urban Co-operative Bank, which once upon a time was leading and the most successful banking the co-operative sector in the State of Goa, is presently in dire strait. That currently, the license of the Mapusa Urban Co-operative Bank, is suspended by the RBI and the said Bank is under liquidation. We are expressing our interest by way of a Firm proposal to infuse/invest sizable capital to the tune of Rs. 200,00,00,000/- (Rupees Two Hundred Crores Only) in the share capital,” the Chairman of Dhanvarsha Group said.
“We can Infuse Share Capital through our Investors by way of an Investment Fund under a Private Placement Deal. We are Interested to convert this Multi-State Scheduled Bank to a Small Finance Bank as per the RBI Norms for converting a UCB to a Small Finance Bank,” he added.
“We are Interested to invest in the Share Capital of the Bank by way of Private Placement and we will be making all efforts to revive the bank in association with the shareholders of the bank. Since there has been a major change in the legislation by the Central Government since “Public Issue” or “Private Placement” as per the Section 12 of the “Banking Regulations Amendment Act 2020,” we are all set to see a major transformation in cooperative banking sector soon,” concluded Joshi.
About Dhanvarsha Group
Dhanvarsha Group is a global Indian Business Conglomerate. In 20 years, the Group has been forayed into Businesses like Infrastructure, Travel & Tourism Infrastructure Development, Retail, Pharmaceuticals, Pharmacy & Healthcare, IT & Education, Hospitality & Hotels, E-Commerce, Merchant Acquiring, Banking, Financial Services, IT Security, Cyber Security, Private Equity Investments & Venture Capital, Housing Finance & Asset Reconstruction. The Group is led by a financial wizard and its Chairman Anshumman Joshi, the man who was born to revive cooperative banks in India. He gives the cooperative banking sector a ray of hope.