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CKP Bank License Revoked by RBI

The Reserve Bank of India revoked the license of CKP Cooperative Bank due to its deteriorating financial health. CKP Bank's gross non-performing assets increased substantially from 90.6% to 96.83% over the past year. Depositors will receive up to Rs. 5 lakh of their savings from the deposit insurance scheme, as a liquidator is appointed to recover loans and return funds. However, the former bank director said the action was too harsh as the bank had made a profit last year and only needed Rs. 300 crore to revive itself.

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Pankaj Choudhury
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111 views2 pages

CKP Bank License Revoked by RBI

The Reserve Bank of India revoked the license of CKP Cooperative Bank due to its deteriorating financial health. CKP Bank's gross non-performing assets increased substantially from 90.6% to 96.83% over the past year. Depositors will receive up to Rs. 5 lakh of their savings from the deposit insurance scheme, as a liquidator is appointed to recover loans and return funds. However, the former bank director said the action was too harsh as the bank had made a profit last year and only needed Rs. 300 crore to revive itself.

Uploaded by

Pankaj Choudhury
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

13/03/2023, 21:00 CKP Co-op Bank’s licence revoked; depositors to get up to Rs 5 lakh

Printed from

CKP Co-op Bank’s licence revoked; depositors to get


up to Rs 5 lakh
/ May 3, 2020, 06.00 AM IST

A view of closed CKP Co-op Bank in the city after Reserve Bank of india cancelled its licence on Saturday
RBI says it gave the bank enough time to improve financial health but NPAs increased substantially.

The Reserve Bank of India has revoked the license of CKP Cooperative Bank Ltd, one of the oldest cooperative
banks in Mumbai. In 2012, the RBI had directed the bank to take steps to improve its financial health. However,
sources said its status was only deteriorating further.

Founded in 1915, CKP Bank has eight branches across Mumbai and Thane, with 1.31lakh customers and
deposits worth Rs 485 crore. The RBI will now appoint a liquidator to recover loans and try to return the
depositors’ money. As per the revised limits announced in February this year, for every customer savings up to
Rs 5 lakh are supported by the deposit insurance scheme.

In its order, the RBI has observed that CKP Bank was given adequate time and opportunities by the Urban
Cooperative Banks’ task force.

However, its revival efforts were far from adequate. Its gross non-performing assets increased from 90.6 per cent
to 96.83 per cent from March 31, 2018 to March 31, 2019. Further, the bank’s deposits eroded from 48.65 per
cent to 51.45 per cent.

The report states that no merger proposal was received with respect to the bank. It adds, “Taking into
consideration all the facts and circumstances, the RBI is satisfied that allowing CKP Co-op Bank to carry out its
business any further would be detrimental to the interest of the bank’s present and future depositors. Hence, its
license to conduct business is cancelled.”

https://mumbaimirror.indiatimes.com/mumbai/other/ckp-co-op-banks-licence-revoked-depositors-to-get-up-to-rs-5-lakh/articleshowprint/75513073.cms?... 1/2
13/03/2023, 21:00 CKP Co-op Bank’s licence revoked; depositors to get up to Rs 5 lakh

Speaking to Mirror, CKP Bank’s former director Rajendra Phanse said, “The RBI’s action is too harsh and
untimely. We will challenge it before the Finance Minister within 30 days as per the Banking Regulation Act’s
provision.”

Phanse said besides deposits worth Rs 485 crore, the bank has an investment of Rs 235 crore in government
securities. He also said it has attached assets worth Rs 65 crore of defaulters, and is in the process of attaching
additional assets worth Rs 60 crore.

“The bank also made an operating profit of Rs 15 crore in the last financial year,” he said, adding that in 2009,
when Madhopura Cooperative Bank went down, the Centre revived it by infusing Rs 800 crore. Phanse said,
“Our bank needs just Rs 300 crore. So why are we being given such stepmotherly treatment.”

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