RBI Supersedes Abhyudaya Coop Bank's Board, Appoints SP Pathak as Administrator for 12 Months
Moneylife Digital Team 24 November 2023
Reserve Bank of India (RBI) has superseded the board of directors of Abhyudaya Cooperative Bank Ltd for 12 months and appointed Satya Prakash Pathak, former chief general manager (CGM) of State Bank of India (SBI) as administrator to manage the affairs of the cooperative bank during this period.
 
In a release, RBI says, "The action is necessitated due to certain material concerns emanating from poor governance standards observed in the Bank. No business restrictions have been placed by RBI, and Abhyudaya Cooperative Bank shall continue to carry on its normal banking activities as hitherto, under the guidance of the administrator."
 
The banking regulator also appointed a committee of advisors (CoA) to assist Mr Pathak. Members of the CoA are Venkatesh Hegde (former general manager of SBI), Mahendra Chhajed (chartered accountant-CA) and Suhas Gokhale (former managing director-MD of COSMOS Cooperative Bank Ltd). 
 
Abhyudaya Cooperative Bank is an urban multi-state cooperative bank based in Maharashtra. It has 109 branches in Maharashtra, Gujarat, and Karnataka, out of which 18 provide banking services seven days a week.
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