Mismanagement in loan giving has caused the downfall of Mumbai-headquartered Abhyudaya Co-operative Bank, reports Business Today.
The Reserve Bank of India (RBI), which identified governance lapses, has superseded Abhyudaya’s board. The bank has a deposit base of Rs 10,838 crore and advances of 6,654 crore as of March 31, 2020.
Business Today says the co-operative bank faced a major shock from the deterioration in its asset quality, especially in the corporate book.