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TMI BlogFund misappropriation led to RBI action on New India Co-operative BankX X X X Extracts X X X X X X X X Extracts X X X X ..... Fund misappropriation led to RBI action on New India Co-operative Bank X X X X Extracts X X X X X X X X Extracts X X X X ..... nd will be in a position to get their entire money by way of deposit insurance, they said. As per the sources, the bank's chief compliance officer (CCO) approached the Mumbai Police's Economic Offence Wing on Thursday following the discovery of some lapses in a 'spot inspection' of its books by RBI. The issue pertains to misappropriation of funds by some staff members of the bank, they said, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout revealing the overall amount or the identities of the people involved. The RBI had on Thursday prohibited the bank from issuing new loans and suspended deposit withdrawals, and followed it up by superseding the bank's board for mismanagement on Friday. It also appointed an administrator and a committee of advisors and tasked them with reviving the bank and restoring normal banking opera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions at the earliest. As per the sources, over 90 per cent of the bank's 1.3 lakh depositors have amounts up to Rs 5 lakh. The Deposit Insurance and Credit Guarantee Corporation covers amounts up to Rs 5 lakh, and experts opine that if the bank goes into liquidation, the depositors will be able to receive the amount. As of March 2024, the bank had 28 branches. Its overall assets decreased to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs 1,175 crore from the year-ago period's Rs 1,330 crore, and the gross non-performing assets ratio increased to nearly 7.96 per cent. Harried depositors of the bank had gathered at its branches on Friday following RBI's restrictions, which included a bar on issuing new loans and suspension of deposit withdrawals for six months. The bank has 28 branches, mostly located in the Mumbai region. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e overall deposit base increased marginally to Rs 2,436 crore at the end of FY24 from Rs 2,406 crore in the year-ago period. Over two-thirds of the deposits are term deposits, as per the bank's annual report. The bank was started in 1968 by staffers of a state-run general insurer with similar name, and differs from peers in the cooperative banking world because it does not have any roots in a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticular community. It does not have any political leanings either, as per people in the know. In a statement, the Reserve Bank of India (RBI) said it has appointed Shreekant, a former chief general manager of State Bank of India (SBI) as 'Administrator' to manage the affairs of the bank. The Board of Directors has been superseded for 12 months. RBI has also appointed a Committee of Advisors t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o assist the Administrator in discharging his duties. The members of the Committee of Advisors are Ravindra Sapra (former General Manager, SBI) and Abhijeet Deshmukh (chartered accountant). "The action is necessitated due to certain material concerns emanating from poor governance standards observed in the bank," it said. On Thursday, the RBI had imposed several restrictions on the lender incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding on withdrawal of funds by depositors, amid supervisory concerns. PTI AA ANU ANU X X X X Extracts X X X X X X X X Extracts X X X X
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