Page 21 - Banking Finance June 2020

CO-OPERATIVE BANK NEWS

CO-OPERATIVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

RBI cancels license of visible," the RBI said, giving reasons for which was superseded, included names
the decision. like NCP leader and current Deputy
Mumbai-based CKP Co-op Chief Minister Ajit Pawar, among oth-
The bank has negative networth of Rs.
Bank 239.2 crore. It has a customer base of ers. Back then, the bank had reported
RBI has cancelled the license of 1,34,167 and has eight branches a total loss of Rs 1,069 crore.
Mumbai-based The CKP Cooperative spread across Mumbai and Thane dis-
Bank Ltd., with effect from the close tricts. Visakhapatnam Coopera-
of business on April 30, 2020, as the The banking regulator said the bank tive Bank turnover crosses
lender's financial position had deterio-
did not satisfy the requirement of mini-
rated and it was not in a position to mum capital and reserves and was not Rs.6000 crore
repay depositors. The 104-year old Visakhapatnam Coop-
in a position to pay its present and fu-
"The Registrar of Co-operative Societ- ture depositors. erative Bank, the largest in south In-
ies, Pune, Maharashtra, has also been dia, has reached yet another milestone
requested to issue an order for wind- MSC Bank reports record crossing a turnover of Rs.6,000 crore
ing up the affairs of The CKP Coopera- on June 30 this year.
tive Bank Ltd., Mumbai, and appoint operating profit According to its chairman Chalasani

a liquidator for the bank," RBI said in The financial year 2019-20 for the Raghavendra Rao, the bank business
a statement. Maharashtra State Cooperative (MSC) was Rs.6,048 crore including Rs.3,680
The depositors of the bank will get a Bank would be a memorable one for crore deposits and Rs.2,368 crore ad-
maximum of Rs. 5 lakh from the De- the bank, which reported highest dis- vances.
posit Insurance and Credit Guarantee bursal of loans in its 109-year history. The bank, with a membership of
Corporation (DICGC), as per law. The The bank has also managed to report 88,185, has 50 branches in the two
deposit insurance cover was increased 0 per cent net non-performing asset Telugu states and occupied 18th place
to Rs. 5 lakh from Rs. 1 lakh earlier this (NPA) for the first time in its history. among urban cooperative banks in the
year. The bank has a deposit base of The bank also reported a record oper- country, he said.
Rs. 485.56 crore, as on November ating profit of Rs 758 crore. Sitting at
2019. the apex of the cooperative credit Since 2011, the bank has been under
a board of administrators, which has
"The financial position of the bank is structure in the state, the MSC Bank
highly adverse and unsustainable. was dismissed by the Reserve Bank of been steering the bank's business since
There is no concrete revival plan or India in 2011 due to mounting losses them.
proposal for merger with another and alleged financial irregularities. The The financial results of the bank show
bank. Credible commitment towards bank was controlled by the NCP and that the bank has reported record dis-
revival from the management is not Congress and the board of directors, bursal of loans worth Rs 20,817 crore,

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