Financial Daily from THE HINDU group of publications
Tuesday, Aug 13, 2002
Money & Banking - Co-operatives
Saraswat co-op bank board removes MD
MUMBAI, Aug. 12
IN a surprise development, Mr D.R. Shirodkar, Managing Director, Saraswat Cooperative Bank Ltd, a multi-state urban co-operative bank, has been removed by the bank's board.
According to officials, the bank board at its meeting on Saturday passed a `no-confidence' resolution against Mr Shirodkar.
While officials attribute "administrative '' reasons for the Managing Director's removal, sources in the bank allege political motives behind the board's action.
The co-operative bank has 75 branches with presence in five States- Maharasthra, Goa, Karnataka, Madhya Pradesh and Gujarat.
There were "differences'' between the board members and Mr Shirodkar over the delay in the implementation of core-banking solutions provided by i-flex, said a bank official.
"The board has held Mr Shirodkar responsible for the delay in the implementation of the core banking solutions provided by i-flex Solutions,'' he said.
However, a bank source alleged that Mr Shirodkar, who has been with the bank for the past 30 years, refused to follow directions from "political bosses.''
Mr S.K. Banerjee, who has taken over as Managing Director, said that "Mr Shirodkar has ceased to be an employee of the company on account of various administrative issues.'' He, however, declined to clarify as to what these "administrative issues'' were.
The bank has also decided to proceed against i-flex Solutions for the delayed implementation of the core banking solutions and filed a notice against the company through Little and Company.
Mr Shirodkar had been the Managing Director for the past three years.
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