India's Maruti to take over troubled Maubank?

Sources in New Delhi confirmed that Maubank, the bank formed after the forced takeover of the Bramer Bank or the Bramer Banking Corporation, is in talks with the Indian based Maruti Suzuki bank for a take-over bid.

The source said an evaluation of the Maubank is being carried out by independent auditors to decide on the selling price of the troubled Mauritian bank.

The Bank of Mauritius has also given its green light for the talks between the two banks, the source said.

Maubank was created at the crust of the government of Mauritius clamp down on the British American Investment Group (BAI), which saw the forced take-over of the Bramer Bank.

Bramer Bank was part of the BAI, formerly one of the largest conglomerate in Mauritius which invested in banking, insurance, asset and wealth management, trade & commerce.

It had services in Bahamas, East Africa, Mauritius, Malta, South Africa and UK.

On April 2, 2015 Bramer’s banking license was revoked by the BOM following massive withdrawals of deposits from the bank following allegation the bank was involved in a Ponzi scheme.

The then Prime Minister Sir Aneerood Jugnauth had said prior to the closure of the bank that there was evidence of links to a $690 million Ponzi scheme.

The BOM decided to pull the bank’s license to avoid systemic risks to the domestic financial system, as the withdrawals amid the allegations had also affected the bank’s ability to raise funds on the interbank market.