The Times of India              19.12.2013

Nashik civic body told to invite tenders from banks for FDs

NASHIK: The standing committee of the Nashik Municipal Corporation (NMC) on Wednesday directed the civic administration to invite tenders from nationalised banks quoting their interest rates for making fixed deposits (FDs).

The standing committee chairman Ramesh Dhongade's directive came after the civic administration tabled a proposal concerning renewal of its FDs at a meeting of the committee on Wednesday.

According to civic body officials, the NMC has FDs worth Rs 244 crore in 50 different branches of nationalised, private and co-operative banks. The FDs are either made in cash or renewed in the concerned banks after maturity.

While directed the concerned officials to invite tenders from nationalised banks asking them to quote their interest rates, Dhongade said, "Prefer those nationalised banks which are offering higher interest rates to the NMC for making FDs."

Rajesh Lande, chief accounts officer in the NMC, said, "The civic body has FDs totally worth Rs 244 crore. The standing committee has also allowed making investment in five private banks. Around five FDs of the NMC are getting matured by December-end. Hence, we need approval of the standing committee for renewal of the concerned FDs. After maturity, we invite interest rates from the banks and make FDs in those banks which offer more interest rates."

Earlier, standing committee member Shivaji Sahane (Shiv Sena) urged the standing committee chairman to make FDs in maximum five nationalised banks instead of doing it in more banks. He said, "If we make FDs of around Rs 50 crore each in five nationalised banks, we will not only get interest but also loans based on FDs at minimum rates in case of urgency to carry out various developmental works."