“Liquidation is not the solution. Instead, we requested for the merger of the bank with another strong bank and protection of the interest of depositors with deposits of over Rs five lakh,” Pandit said.
Union Minister of State for Finance and Banking Bhagwant Karad “coordinated and navigated the meeting”, he said.
He apprised both the deputy governors about the efforts taken by the bank for “recovery and earning operating profit”, Pandit added.
“If the bank goes into liquidation, then those who have deposits of above Rs 5 lakh, most of them senior citizens, may lose almost sixty-five percent of their deposits,” he added.
Dr Karad assured him that he would pursue the matter, the administrator said.