As the controversy over financial irregularities at Yashwant Co-operative Bank intensifies, the involvement of Chikhli Urban Cooperative Bank is also coming to light. Satish Gupta, Chairman of Chikhli Urban Co-operative Bank, has issued a detailed clarification to distance his institution from the core of the scam.
In a candid statement, Gupta acknowledged that Chikhli Urban Co-operative Bank was part of a consortium that had extended loans to companies allegedly linked to former Yashwant Bank Chairman Shekhar Charegaonkar and his associates.
“Yes, we were part of the lending consortium, but our exposure was entirely through secured loans. There are no unsecured loans in our portfolio,” Gupta emphasized.
He revealed that the consortium’s total exposure amounted to approximately Rs 51 crore, including principal and interest. “We have already recovered a significant portion of our dues, and the remaining amount is backed by properties that are currently under legal attachment,” he added.
Gupta stressed that recovery proceedings are well underway and being closely monitored. “All necessary legal actions for recovery have been initiated, and dues are being settled. We are optimistic that the matter will be fully resolved in the near future,” he said.
Addressing concerns about the bank’s financial health, Gupta reported that Chikhli Urban’s current net non-performing assets (NPA) stand at 8.75%, and are projected to fall to zero by the next financial year, assuming recovery continues as planned. “We are making full provisioning against these accounts,” he confirmed.
Offering an overview of the bank’s overall performance, Gupta stated that Chikhli Urban has a loan book of Rs 800 crore against deposits of around Rs 1,200 crore. The bank recorded a net profit of Rs 4.5 crore as on 31st March 2025, despite carrying some accumulated losses from earlier periods.
“There is a deliberate attempt by certain quarters to link us to the core scam, but our bank has been fully compliant with RBI norms. All our exposures are secured, and recovery is progressing steadily. We remain committed to protecting our depositors’ interests,” Gupta asserted.
However, concerns have emerged regarding Chikhli Urban’s sanctioning of loans worth Rs 18–20 lakh each to around 10 employees of Yashwant Co-operative Bank. These particular loans are reportedly unsecured, raising questions about deviations from the bank’s standard secured lending policy.
