Bhilwara Mahila Urban Co-op Bank: Liquidator appointed

Registrar of Cooperative Societies, Rajasthan has appointed Deputy Registrar Parasmal Jain as the liquidator in Rajasthan based Bhilwara Mahila Urban Cooperative Bank on Wednesday, the news of the cancellation of whose license had grabbed headlines last week.

Though Indian Cooperative could not talk to Mrs Payal Agarwal who was Chairman of the UCB when its license was cancelled, we could gather some information related to the UCB by contacting Hanuman Prasad, father-in-law of Payal. Mr Agrawal is also an official of state Sahakar Bharati unit.

Agarwal informed that, “The Bank is having about 25,000 account holders and around 9,000 are its shareholders. The bank has to recover about 47 crore rupees from 438 defaulters”, he said. “The bank has a deposit base of about Rs 59 crore, has 25,550 accounts which are having a balance of less than 1 lakh rupees”, he added.

Meanwhile, Jain, the newly appointed Liquidator took over Wednesday afternoon and took the stock of the situation of the ailing bank. It is being reported that the number of staff members will be downsized and the recovery staff will be kept. Liquidator will send the report to Deposit Insurance and Credit Guarantee Corporation (DICGC).

Readers would note that Bhilwara Mahila Urban Cooperative Bank had given loans & advances of around Rs 14 crores by violating the norms of RBI. Sources said the loans had been given to borrowers without collateral, which caused the bank to be in the red.

Bhilwara Mahila Urban Cooperative Bank was established in 1998. The Bank has performed well in the early days.