RBI has warned if Rupee Cooperative Bank did not merge with another bank latest by the beginning of 2014, it would go ahead liquidating the beleaguered bank. The latter has been under RBI directions as it is mired in massive irregular transactions and non-performing assets.
Mumbai-headquartered Saraswat Cooperative Bank is one of the few banks that has already got the due diligence of the crisis-ridden bank carried out and shown readiness to takeover its few branches. Saraswat Bank is expected to shell out Rs. 110 crore as its contribution.
RBI sources say the apex bank would approve of the takeover of the bank only if it found the exercise creating no difficulties for customers.
Rupee Cooperative Bank has been a leading cooperative bank with a customer base of over six lakh and a network of 36 branches. Its deposits are impressive counting Rs 1425.5 crore and loan disbursement totalling Rs 628.5 crore. The bank’s non-performing assets are about Rs 357.06 crore and its accumulated loss Rs 570.15 crore.
Earlier Saraswat Co-operative Bank had taken over Mumbai-based The South Indian Co-operative Bank in 2008, offering so-called relief to about 66,000 depositors.
But several depositors flooded Indian Cooperative desk with complaints of Saraswat Bank’s step-motherly treatment to the erstwhile depositors of SICB. Depositors questioned RBI’s special favour to Saraswat as they alleged that the take-over had pushed them from bad to worse condition.
It is pertinent that the experience of Rupee Cooperative Bank’s depositors turn out to be different. But it is possible only when RBI ensures safety of depositors fund by working out detailed course of action with Saraswat.
I have recouring in rupee bank of 85000 rupee what about my rupee when I got it
Mr Father has 5-6 lakhs rupees in Fixed and current account. He is ill and in need of money.
But Rupee bank doesn’t provide any help. Can anyone revert me or help me to come out of this trouble?
i saw yesterday news about pen co operatinve bank has been takenover immiately why not rupee co op bank which swindled by directors and no action against them all ministers and rbi giving lollypops about it in past many banks became defaulter but within months taken over by other banks but not rupee bank rbi is giving licenses to new private banks why government put a pressure on new banks to take over rupeebank
date 5th feb 2015