In a significant boost to the cooperative banking sector, the Reserve Bank of India has withdrawn the restrictions imposed on Pimpri Chinchwad Cooperative Bank under the Supervisory Action Framework (SAF).
The bank, headquartered in Pune and led by Chairman Shirish Deshpande, had been under SAF for the past many years.
The RBI’s decision comes in recognition of the bank’s improved financial health, particularly its performance as on 31st March 2024. In a communication addressed to the bank’s CEO, the central bank stated, “Since the bank has improved upon its financial position, the supervisory restrictions imposed on the bank are hereby withdrawn.”
The RBI had initially imposed the SAF restrictions on the bank via a letter dated June 16, 2021, citing concerns over its financial health.
However, under Deshpande’s leadership, the bank has not only emerged from the SAF framework but has also successfully completed the amalgamation of Pune Commercial Cooperative Bank with Pimpri Chinchwad Cooperative Bank—a move seen as a strategic expansion and consolidation of its operations.
The lifting of restrictions is expected to enhance the bank’s operational freedom and pave the way for future growth.
