The RBI action led to many depositors withdrawing their funds with about Rs100 crore being withdrawn since the administrator was appointed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 However, the RBI action led to many depositors withdrawing their funds with about Rs100 crore being withdrawn since the administrator was appointed.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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Their usurious loans and dubious insurance were already killing people. Now they are gathering here to post nasty comments.
Buzz off you trolls... go find someplace else for your dubious comments and tricks.
Moneylife... you need to find a way to end motivated comments.
In the past, over the last year, I have been accused of being partial to banks and you say I am targeting banks. Please read my earlier articles on BCs given below
http://www.moneylife.in/article/the-need...
The fact of the matter is that banks were also hugely responsible for the Micro-finance crisis of 2010 and if only, they had proper internal audits of their own processes and portfolio (in Priority sector lending), ghost clients, multiple lending, overindebtedness, frauds and other such happenings would not have happened to the scale it happened. In fact, banks got the most out of micro-finance and MFIs got the bad name - in retrospect, banks were equally responsible as were the regulators.
That is why I feel that even as the BC model is starting out, banks and regulators must develop a rigorous system of internal audits and my next article focuses on that.
Thanks
Best regards
Ramesh
I have written about what is happening in the BC space and the current low cost bids are certainly a cause for concern.
I have not targeted anyone in the article and all I would like to say is that given the present circumstances, the BC model cannot be implemented properly.
Thanks for your comments
Best regards
Ramesh
This article is not worthy of a person with such an experience. He should have taken a more positive view on how RBI and banks are working in getting banking services close to poor rural masses.
I agree that MFIs started on a good note and then messed up. Why? The drive for commercialisation and scale (in the absence of internal audits) is what resulted in the huge mess and crisis of 2010. That is why it is very critical to ensure quality servicing by BCs and have rigorous internal audits of BCs - otherwise, the same mess that happened with MFIs will happen in the BC space. That is why regulators need to be proactive now with regard to BCs as they are were laizze faire with MFIs and they are as much to blame for the MFI crisis as the MFIs and banks.
Hope this clarifies
Thanks
Thanks for your UNKIND comments and I don’t lift stories. And if you compare today’s ET story where I am one of the few people QUOTED extensively, you will know that our analysis and approach are different
I use published news items for authenticity and then provide my own analysis. I have done that here and kindly mind your language please. Thanks
I have used ET to quote the bid amounts AUTHENTICALLY and then proceeded to give my analysis extensively which is 99% of the article. In fact, todays’s ET story quotes me and you can also speak to M Rajshekar of ET with whom I have had a number of discussions
I am sorry but I cannot write anything positively about the BC model, when none exists. And I believe that the BC model is doomed to fail for the reasons mentioned in my article unless there are course corrections. Make no mistake about that
Best regards
Ramesh
1) http://www.moneylife.in/article/the-need...
2) http://www.moneylife.in/article/bank-bus...