Rupee Co-operative Bank get another extension from RBI

By: |
February 29, 2020 1:30 AM

During the administrative period, the bank has recovered a total Rs 338 crore.

rupee cooperative bank, banking sectorThe bank reported deposits of Rs 1,289.18 crore as on January 31, 2020.

Rupee Co-operative Bank, Pune has been granted yet another extension for its banking license till May 31, 2020 by the Reserve Bank of India (RBI) .

The bank reported deposits of Rs 1,289.18 crore as on January 31, 2020. It paid Rs 350.58 crore to 88,693 needy depositors under Hardship Scheme of the RBI since February 2013 when the bank was placed under RBI directives.

Sudhir Pandit, chairman of the board of administrators said that the joint proposal for merger of Rupee Bank with MSC Bank, mutually agreed by both the banks envisaging ‘no loss’ to the depositors, has already been submitted to RBI. The proposal is presently under scrutiny and evaluation of the RBI, he said, adding that both the banks are following up the issue with RBI. The proposal is expected to gather speed after March 31, 2020.

The administrative board of Rupee Bank is keen to get its statutory audit completed at the earliest after the year end, in case it is insisted by RBI as a pre-condition for merger, he explained.

“The board of administrators of Rupee Bank is making all efforts to safeguard the interests of its depositors since last three years. RBI has taken a note of these efforts by the board of administrators,” Pandit said.

During the administrative period, the bank has recovered a total Rs 338 crore. In the current financial year, the bank, till January 31, has recovered Rs 13.53 crore. The bank reported an operating profit of Rs 13.47 crore after all required provisions as on January 31, 2020. The bank expects recovery of Rs 20 crore during the year, Pandit said, adding that the bank is also hopeful of earning operating profit of more than Rs 12 crore in the current financial year.The bank has also curtailed the administrative expenses from Rs 84.37 crore as on March 31, 2013 to Rs 20.93 crore on January 31,2020.

The bank has taken effective steps for recovery in hardcore accounts, including attachment of properties of defaulters, public auctions of the same, filing criminal suits against defaulters/guarantors etc. The bank has also informed the names of its defaulters/guarantors to other banks for effective recovery, Pandit pointed out.

For early recovery of the hardcore and chronic NPAs, the bank is preparing revised Rupee Bank Specific One Time Settlement Scheme which will be submitted to the state government for approval. The hearing on the appeals filed by the delinquent ex-directors and executives against the enquiry held u/s 88 of the MCS Act is complete and the decision on the same is expected shortly, Pandit said.

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