MALAPPURAM, Nov 30: It was nothing but pure political compulsions that forced the Malappuram District Co-Operative (MDC) Bank distance itself from the recently constituted and soon-to-be-commissioned Kerala Bank.
While 13 out of the total 14 DCBs formed part of the new bank, the MDC Bank opted to keep off the big bank. And the resistance by the bank authorities is opposed by the whole staff members who had expressed their desire to form part of the big bank, in writing.
The staff and customers of MDC are a concerned lot as they fear the solitary stance would affect their banking prospects negatively.
The new bank has been formed by merging the District Co-Operative Banks (DCBs) with the Kerala State Co-Operative Bank ( KSCB) and renaming it as Kerala Bank, by amending Sec 14(A) of the Kerala Co-Operative Societies Act.
The idea of a bigger and wider-networked banking entity in the cooperative sector equipped to cater to most modern banking needs has been mooted by the CPI-M Left Democratic Government (LDF).
The Kerala Bank, once comes into being, will have authority to deal in NRI accounts directly and will also be having a sizable market share in the banking scenario of Kerala.
The bank is expected to play the role of the erstwhile State Bank of Travancore, which got merged with State Bank of India, last year.
Despite the fact that the new entity would become the bank with largest network in Kerala, the general body of the MDC Bank stick strong to its declared policy to oppose the amalgamation.
The MDC Bank, governed by loyalists of the Indian Union Muslim League (IUML) voted against the resolution adopting the amalgamation and forming part of the new banking entity, not once but twice and reaffirmed its political stance.
The IUML dominated MDC had its clear political motive to sabotage the big idea of the Government by non-cooperating and thus upsetting the very idea of amalgamating all 14 DCBs.