The Reserve Bank of India (RBI) has extended the supersession of the Board of Directors of Mumbai-based Abhyudaya Co-operative Bank Ltd. for another year, effective November 24, 2026, even as the bank has reported a significant improvement in its financial performance during FY 2025-26.
The extension means that the bank will continue under the administration of Satya Prakash Pathak, who was appointed Administrator in November 2023. He will be assisted by the existing Committee of Advisors comprising Venkatesh Hegde, Devendra Kumar and Suhas Gokhale.
The RBI had originally superseded the bank’s board for one year on November 24, 2023, citing material concerns arising from poor governance standards. The supersession was subsequently extended in November 2024 and November 2025.
Following a review, the central bank has now decided that, in the public interest, the supersession should continue beyond November 23, 2026. The latest extension has been issued under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949.
Interestingly, the RBI’s decision comes at a time when Abhyudaya Bank is showing clear signs of financial recovery after years of stress. The bank nearly doubled its net profit to Rs 10.11 crore in FY 2025-26 from Rs 5.22 crore in the previous year, while its Profit Before Tax (PBT) jumped by over 176 per cent to Rs 96.33 crore from Rs 34.87 crore.
The improvement is equally visible in asset quality. Gross NPAs declined to Rs 842.42 crore from Rs 949.01 crore, while Net NPAs dropped sharply to Rs 182.16 crore from Rs 253.25 crore. The Provision Coverage Ratio (PCR) also strengthened from 73.14 per cent to 78.20 per cent, indicating improved provisioning against stressed assets.
The bank’s deposit base remained broadly stable, increasing from Rs 9,118.40 crore in March 2024 to Rs 9,366.62 crore in March 2026. However, advances declined from Rs 5,590.86 crore to Rs 4,324.24 crore during the same period, a contraction of nearly 23 per cent. While the bank has managed to retain and marginally grow its deposit base, the continued decline in advances highlights the challenge of rebuilding its lending business.
In another encouraging sign, the bank’s Capital to Risk-Weighted Assets Ratio (CRAR) improved from 3.62 per cent in March 2025 to 6.46 per cent in March 2026. Its negative net worth, which stood at Rs 157.87 crore in March 2025, narrowed substantially to Rs 29.21 crore by March 31, 2026.
The bank has also made progress in reducing its accumulated losses. The net loss carried forward in its balance sheet declined from Rs 371.50 crore in March 2024 to Rs 316.66 crore in March 2026, a reduction of Rs 54.84 crore over two years. The bank’s management has expressed confidence that it will achieve positive net worth during the second quarter of FY 2026-27.
Despite these encouraging financial indicators, the bank’s recovery remains a work in progress. Negative net worth, accumulated losses and declining advances continue to pose challenges, even as the RBI has decided to keep the bank under administrative oversight for another year.
