RBI extends its existing directions about Rupee by another 3 months

ST Correspondent
Tuesday, 22 August 2017

The board said the bank recovered Rs 161 crore in 2016-17 and earned an operating profit of Rs 16 crore. The board has taken steps like reduction in administrative expenditure, increasing income through recovery, re-location or closure of branches, shifting of the bank’s head office and reduction in staff strength through VRS. 

PUNE: Reserve Bank of India (RBI) has decided to extend its existing directions to Rupee Cooperative Bank till November 21. 

The board of administrators of the bank said they have set a recovery target of Rs 80 crore for financial year 2017-18, of which Rs 15 crore has been recovered, along with a profit of Rs 15 crore.

As a result of mounting bad debts, the RBI put stringent restrictions on Rupee Cooperative Bank in February 2013. Since then, the board of administrators had unsuccessfully tried to merge the bank with other banks.

The board said the bank recovered Rs 161 crore in 2016-17 and earned an operating profit of Rs 16 crore. The board has taken steps like reduction in administrative expenditure, increasing income through recovery, re-location or closure of branches, shifting of the bank’s head office and reduction in staff strength through VRS. 

The board said it has expedited recovery measures by filing criminal cases and invoking disciplines for willful defaulters as per RBI guidelines, adding that it is in touch with banks to explore possibilities of a merger.

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