HUDCO currently doing institutional finance, had not given loans to retail customer in the...
The RBI action led to many depositors withdrawing their funds with about Rs100 crore being withdrawn since the administrator was appointed
Thane: Stepping in to support the CKP Cooperative Bank, Maharashtra Urban Co-op Banks Federation (MUCBF) has appealed to the bank's depositors not to withdraw their deposits, else a moratorium from the Reserve Bank of India (RBI) was imminent, reports PTI.
Addressing the depositors of the troubled bank, Vidyadhar Anaskar, chairman of the Federation said that unlike some other banks, there has been no swindling of funds in this bank and the Reserve Bank recently appointed an administrator for some violation of norms by the previous Board of Directors. However, the RBI action led to many depositors withdrawing their funds with about Rs100 crore being withdrawn since the administrator was appointed.
Anaskar told depositors that the bank's position was sound. However, if the depositors continue to withdraw, the bank may face liquidity crunch and in that case, the RBI could impose moratorium and put a cap on further withdrawals. He also said that the Federation had never taken up the case of any co-op bank against which the RBI had taken action but in case of CKP Bank the issue was different and hence the Federation was supporting it. The bank itself had also come up with an advertisement recently saying that its position was sound and the depositors' money was secured.
The bank had deposits of Rs1,023 crore as of March 2012 and advances of Rs622 crore and net non performing assets of 5.65%.
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