Thiruvananthapuram: Kerala government has completed procedures of merging the Malappuram District Cooperative Bank with the Kerala Bank. The UDF-controlled district bank was the only district cooperative bank in the state that refused to be part of the newly formed state bank.
The procedure was completed after the Kerala High Court refused to stay the merger. However, the court said the consequential actions will be subject to the final decision of the court in the plea moved by the district bank.
Reserve Bank of India had permitted the merger of all 14 district cooperative banks for the establishment of Kerala Bank which was founded in November 2019. When Malappuram bank passed a resolution against it, the government moved to merge it forcefully.
Cooperation minister VN Vasavan said that the court stand is in vindication of the position of the state government.
However, the legal process is likely to continue for a while.