C.K.P.Co-operative Bank in trouble

rbi.The Reserve Bank of India has extended Directions issued to The C.K.P.Co-operative Bank Ltd., Mumbai, Maharashtra.

The directions shall continue to apply to the bank for a further period of three months from the close of business on November 1, 2014 vide modified directive dated October 21, 2014 subject to review. RBI placed the bank under direction on dated April 30, 2014.

According to the Reserve Bank’s directions, C.K.P.Co-operative Bank cannot, without the prior approval of the Reserve Bank in writing, grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the Reserve Bank’s directions.

A copy of the directive dated October 21, 2014 is displayed at the Bank’s premises for the perusal of public.

The issue of the Directions by the Reserve Bank should per se not be construed to imply that the Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank.

 

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