RBI Cancels License of Shri Bhadran Cooperative Bank

The Reserve Bank of India has cancelled the license of Gujarat-based Shri Bhadran Mercantile Cooperative Bank as its financial condition deteriorated and all its efforts to revive it failed. This decision was taken by RBI as Gujarat’s government failed to take any action against it and also as the depositors were facing inconvenience due to the continued uncertainty. With the interest of bank’s depositors, RBI took the extreme measure of cancellation of bank’s license.

RBI had issued license to Shri Bhadran Cooperative bank in 1986. The current assessment by the central bank says that it has found that the cooperative bank is not in a position to pay its present and future depositors. The inspection carried out by the Central Bank revealed that the net loss of the cooperative bank as on March 2010 was Rs. 2.63 crore and the gross NPAs were 81.3%.

Earlier in this regard, with reference to the bank’s weak financial position, it was placed under suspension for a period of six months, initially which later extended for another six months. And finally the bank closed its business on February 26, 2012.

VN:F [1.9.18_1163]
Rating: 0.0/5 (0 votes cast)

Leave a comment

*

SEARCH

Pages