Page 21 - BANKING FINANCE NOVEMBER 2023

CO-OPERATIVE BANK NEWS

Co-Operative Bank

News

RBI nod for merger of UCB Registrar of Cooperative Societies, Auditors have graded the bank in the
Ministry of Cooperation, has also been 'A' category, and no restrictions have
with Cosmos Co-op Bank requested to issue an order for wind- been imposed on it by the Reserve
The Reserve Bank of India has sanc- ing up the bank and appoint a liquida- Bank of India (RBI), the statement said.
tioned the Scheme of Amalgamation of tor for the bank, according to the cen-
Mumbai-based Sahebrao Deshmukh tral bank's statement. RBI raises monetary ceiling
Co-operative Bank Ltd with Pune-based On liquidation, the RBI said every de-
Cosmos Co-operative Bank Ltd. of gold loans for UCBs
positor would be entitled to receive
"The Scheme has been sanctioned in deposit insurance claim amount of his/ The Reserve Bank has decided to in-
exercise of the powers conferred under her deposits up to a monetary ceiling of crease the monetary ceiling of gold
…the Banking Regulation Act, 1949. The Rs. 5 lakh from Deposit Insurance and loans that can be granted under the
Scheme will come into force with effect Credit Guarantee Corporation (DICGC). bullet repayment scheme to 4 lakh
from September 26, 2023," RBI said. from 2 lakh for those urban cooperative
banks that have met the overall prior-
The branches of Sahebrao Deshmukh Eknath Shinde cabinet
ity sector lending target and sub targets
Co-operative Bank Ltd will function as permits govt offices to do as on March 31, 2023 and continue to
branches of Cosmos Co-operative Bank meet the targets and sub-targets, a
Ltd., with effect from September 26, transactions with release by the central bank said.
2023. Maharashtra State Coop-

RBI cancels Kapol Co-op- erative Bank RBI raises concern over
The Maharashtra government allowed high bad loan ratio in ur-
erative Bank's licence its offices to carry out transactions with
RBI has cancelled the licence of Mumbai- the Maharashtra State Cooperative ban cooperative banks
based The Kapol Co-operative Bank Lim- Bank, a statement said. The cabinet The Reserve Bank of India has raised
ited as the lender does not have ad- headed by Chief Minister Eknath Shinde concerns over the high bad loan ratio in
equate capital and earning prospects. also approved investments to be done urban cooperative banks and laid down
Upon the cancellation of the licence, the by state government PSUs (public sec- an eight point charter including gover-
cooperative bank has been prohibited tor undertakings) in the bank. nance standard for their improvement.
from conducting the business of 'banking' The approvals were given on the basis of The governor said that even as UCBs
which includes, among other things, ac- the bank's role in the cooperative sector, have their cumulative non-performing
ceptance of deposits and repayment of the statement said, adding that the assets ratio improved to 8.7%, this is "not
deposits with immediate effect, the RBI bank's net worth is more than Rs 4,000 a comfortable number". The banking
said in a statement.
crore and it has been posting profits for sector gross NPA has eased to a decadal
The Additional Secretary & Central the past five consecutive years. low of 3.9% at the end of March. T

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