Media reports say Dhanvarsha Group, a Delhi headquartered diversified business organization will bail out the City Cooperative Bank, Bombay with a Rs 230 crore infusion as a part of the proposed package scheme.
It is said if it works out as planned, it will be unprecedented in the banking sector. Dhanvarsha’s chairman Anshuman Joshi is quoted as saying, his organization will become a majority shareholder in the cooperative lender and take over its management.
The City Cooperative Bank has been under RBI directions for many years because of a negative net worth and the capital adequacy falling below the threshold of 9 per cent.