Mumbai: The reserve Bank of India has dissolved the board of Mumbai-headquartered Abhyudaya Cooperative Bank citing concerns over its governance standards. The central bank has said that the supersession is for one year and there will be no restrictions on the bank.
The 58-year-old co-operative society was established as a credit society to cater to the needs of the cotton mill workers of Mumbai. Till March 2021, Rs 10,952 crore were deposited in it.
The bank, which was earlier subject to the RBI’s supervisory action framework, has been struggling to manage its non-performing assets. It is considered too large for absorption by any other co-operative bank.
RBI has appointed Satya Prakash PathakFormer Chief GM of State Bank of IndiaAs ‘Administrator’ during the supersession period.
The 58-year-old co-operative society was established as a credit society to cater to the needs of the cotton mill workers of Mumbai. Till March 2021, Rs 10,952 crore were deposited in it.
The bank, which was earlier subject to the RBI’s supervisory action framework, has been struggling to manage its non-performing assets. It is considered too large for absorption by any other co-operative bank.
RBI has appointed Satya Prakash PathakFormer Chief GM of State Bank of IndiaAs ‘Administrator’ during the supersession period.
(TagstoTranslate)Suhas Gokhale(T)SBI(T)Satya Prakash Pathak(T)RBI(T)Mahendra Chhajed