Rupee Co-op Bank gets extension for its licence

ST CORRESPONDENT
Saturday, 1 June 2019

The bank has paid Rs 332.00 crore to 83,777 needy depositors under the hardship scheme of RBI. The bank is having a deposit of Rs 1,297 crore. The enquiry on the appeals of the delinquent directors and executives is in process.

PUNE: Rupee Co-operative Bank Limited, Pune has been granted an extension for its banking licence by the RBI till August 31, this year. According to the Board of Administrators (BOA) of Rupee Bank, as they are trying to safeguard the interests of its depositors for the last three years, RBI has taken positive note of these efforts. 

Rupee Bank has submitted a ‘merger proposal’ to Maharashtra State Co-op Bank Limited, Mumbai (MSC Bank). The said proposal is under their consideration and BOA is hopeful for the positive response from MSC Bank in this regard. Considering the developments in the political and financial sector and the improving financial condition of RCBL, BOA is hopeful to resolve the long-pending issue of its depositors.

The Statutory Audit for the FY 2018-19 is recently completed. There are no adverse remarks in the recently concluded Statutory Audit for the period 2018-19. The BOA has also requested RBI to carry out an annual inspection of the bank at the earliest. 

The bank has paid Rs 332.00 crore to 83,777 needy depositors under the hardship scheme of RBI. The bank is having a deposit of Rs 1,297 crore. The enquiry on the appeals of the delinquent directors and executives is in process. BOA has requested the State Government to complete the said enquiry at the earliest, as it is going to boost the funds of the bank from the sale of attached properties of delinquent directors.

The bank has effected recovery of Rs 242.70 crore and earned ‘operating profit’ of Rs 33.51 crore since the present BOA has taken over the charge in April 2016.

During the current financial year, the bank has recovered Rs 2 crore and expected recovery during the year is Rs 40 crore. The bank is also hopeful of earning ‘operating profit’ of more than Rs 10 crore in this year. 

The bank has taken hard and effective steps for recovery in hardcore accounts. It includes attachments of properties of defaulter 

borrowers, public auctions of the same, filing criminal suits against defaulter borrowers/guarantors, etc. The bank has also informed the names of its defaulter borrowers to other banks for effective recovery. The bank has also implemented an OTS scheme and effective good recovery from the age-old borrowers. 

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