Page 19 - BF Cover January 2021.cdr

CO-OPERATIVE BANK NEWS

immediate effect," the RBI said in a bank faced problems like a reduction registered a case against several
release. in business growth, deposits and functionaries including the bank
The RBI will make an application for advances, the bank statement reads. chairman Anil Bhosale
winding up before the High Court. During the FY 2019-20, deposits of the The case was registered under various
Subhadra Local Area Bank Ltd has bank decreased from Rs 11,882 crore sections of IPC and relevant sections of
enough liquidity to pay all its to Rs 11,529 crore i.e. decreased by Maharashtra Protection of Interest of
depositors, the RBI said. 2.97 percent whereas advances of the Depositors (MPID).
bank declined from Rs 8,575 crore to
On liquidation, every depositor is
entitled to repayment of his/her Rs 7,853 crore i.e. decreased by 8.42 RBI imposes Rs 50 lakh
deposits up to a monetary ceiling of Rs percent. The total business of the bank
goes down from Rs 20,457 crore to Rs penalty on an urban co-
5,00,000 from the Deposit Insurance
and Credit Guarantee Corporation 19,382 crore in 2019-20 FY, according operative bank in Kerala
(DICGC) as per usual terms and to financial figures published in the The Reserve Bank of India said it has
conditions. Annual Report. imposed a penalty of Rs 50 lakh on The
The Gross NPA increased from 6.76
More than 99 per cent of the Urban Co-operative Bank Ltd No.
depositors of the Karad bank will get percent to 7.43 percent whereas Net 1758, Perinthalmanna in Kerala for
full payment of their deposits from NPA rose from 3.92 percent to 4.69 non-compliance with directions on
DICGC, the RBI said. percent of net advances as on 31st income recognition and asset
March 2020. The Net profit of the
"Consequent to the cancellation of the bank decreased from Rs 97.16 crore to classification norms, and on
licence, Subhadra Local Area Bank Ltd Rs 58.87 crore. Higher provision during management of advances.
is prohibited from conducting the Statutory inspection of the bank with
the year has affected the net profit of
business of 'banking' as defined in the bank, financial report says. reference to its financial position as on
Section 5(b) or any additional business March 31, 2019, conducted by RBI,
envisaged under Section 6 of the Besides, the reserves increased from revealed that the bank had not
Rs 924 crore to Rs 953 crore. The
Banking Regulation Act, 1949, with complied with the directions, the
immediate effect," the RBI said in a CRAR of the bank is 13.81 percent as central bank said in a statement.
release. on 31st March 2020.
A notice was issued to the bank asking
The RBI will make an application for Shivajirao Bhosale Co-op why penalty should not be imposed for
winding up before the High Court. non-compliance with the directions
Subhadra Local Area Bank Ltd has Bank faces liquidation issued by RBI.
enough liquidity to pay all its Maharashtra's Co-operative
depositors, the RBI said. Department has sent a proposal to RBI "After considering the bank's written
seeking liquidation of the Shivajirao reply, RBI came to the conclusion that
Bharat Co-op Bank's Bhosale Co-operative Bank, reports a the charge of non-compliance with
news outlet. aforesaid RBI directions was
business falls by Rs 1000 substantiated and warranted
If RBI accepts the proposal, this will
crore ensure the return of the minimum imposition of monetary penalty," the

Mumbai based Multi-State Scheduled deposit of Rs 5 lakh to bank's statement said.
Bank-Bharat Cooperative Bank's total depositors. Cooperative dept is quoted The penalty has been imposed through
business has fallen by over Rs 1k crore saying those who have invested more an order dated December 11.
and net profit by around Rs 39 crore than Rs 5 lakh will receive at least Rs RBI also said that the action against
in the 2019-20 financial year. Besides 5 lakh. the co-operative bank is based on
the Net NPA and Gross NPA also rose
As many as 71,000 investors have deficiencies in regulatory compliance
in comparison to previous year. invested a fixed deposit of Rs 5 lakh, and is not intended to pronounce upon
Due to the direction imposed by the while 8,000 investors invested more the validity of any transaction or
RBI in the month of September, 2019 than Rs 5 lakh in the form of various agreement entered into by the bank
and due to the Covid-19 Pandemic, the deposits. Earlier, Pune police had with its customers. T

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