RBI supersedes Abhudaya Co-operative Bank Board of Directors
The Reserve Bank of India has superseded the board of directors of Mumbai head quartered Abhyudaya Co-Op Bank for lapses in governance standards for a period of 12 months. RBI has appointed Satya Prakash Pathak, former Chief General Manager of State Bank of India, as “Administrator” to manage the affairs of the bank during this period. It also appointed a “Committee of Advisors” to assist the Administrator to discharge his duties.
No business restrictions have been placed by RBI and the bank shall continue to carry on its normal banking activities as is hitherto, under the guidance of the Administrator, as per a central bank statement. This central bank’s action comes as it observed certain material concerns emanating from poor governance standards in the bank.
The multi-state co-operative Bank had deposits and advances aggregating Rs. 10,952.44 crore and Rs. 6,711.24 crore, respectively, as of March-end 2021, per the Bank’s balance sheet.
