The RBI has issued the Rupee Co-operative Bank Ltd, Pune, a three-month extension of its banking license, according to Sudhir Pandit, the bank’s administrator. “It is recognition by RBI of the Bank’s satisfactory results, and that too despite complete restrictions on bank’s activities,” Pandit said. During the last four years, the bank has made a complete recovery of Rs 258.11 crores and an aggregate operating profit of Rs 53.19 crores. He said that the bank has been profitable for the past four years in a row. The bank’s total deposit as of 31st January was Rs 1,292.84 crores. A total of Rs 295.10 crores has been advanced. The bank made an operating profit of Rs 19.93 crores in the fiscal year that ended in January 2021. The bank had paid Rs 366.54 crores to 92,602 vulnerable depositors under the Hardship Scheme until January 2021.
Pandit also reported that the bank has taken successful measures for hardcore account recovery. Attachment of defaulter borrowers’ assets, public auctions of the same, bringing criminal suits against defaulter borrowers/guarantors, and so on are all examples. The bank has also advised other banks of the names of its defaulted borrowers/guarantors in order to promote recovery.
On 17th January last year, Rupee Bank and MSC Bank submitted a joint merger plan that was mutually decided upon. The RBI, on the other hand, instructed MSC Bank or RCS to resubmit the proposal in accordance with the RBI Circular on Assets and Liabilities, as well as specifying other compliances and conditions. As a result, on November 24, 2020, a revised proposal was submitted through the Cooperative Department. If the Reserve Bank of India is unable to affect the bank’s merger for any reason, the bank will file a reconstruction or revival proposal with the Reserve Bank after obtaining its principal approval.
Pandit said that there are no critical remarks in either the Legislative Audit or the RBI annual inspection, with the exception of negative net-worth. The verdict on the ex-directors’ and officers’ appeals against the section 88 inquiry is expected soon. The bank is following up on the formal announcement of the judgement now that the proceedings have concluded and the case has been closed for judgement.
