November 24, 2024

Rbi: RBI supersedes Abhyudaya Bank board, but business as usual

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MUMBAI: The RBI has superseded the board of the Mumbai-headquartered Abhyudaya Cooperative Bank, citing concerns over its governance standards. The central bank has stated that the supersession is for a year, and there will be no restrictions on the bank.
The 58-year-old cooperative was established as a credit society to meet the requirements of Mumbai’s cotton mill workers.It had deposits of Rs 10,952 crore as of March 2021.
The bank, previously subject to the RBI’s supervisory action framework, has struggled to manage its non-performing assets. It is considered too large for absorption by any other cooperative bank.
The RBI has appointed Satya Prakash Pathak, former chief GM of SBI, as ‘administrator’ during the supersession period.



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