Under Deposit insurance scheme, on liquidation, every depositor is entitled to repayment of his/her deposits up to Rs5 lakh from DICGC. In other words, going by RBI communication, 99.2 percent of the depositors of CKP bank are in the less than Rs5 lakh deposit category.
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RBI cancels CKP Co-op Bank’s licence
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RBI cancels CKP Co-op Bank’s licence
The Reserve Bank of India (RBI) has cancelled the licence of Mumbai-based The CKP Cooperative Bank Ltd., with effect from the close of business on April 30, 2020, as the lender’s financial position had deteriorated and it was not in a position to repay depositors.
“The Registrar of Co-operative Societies, Pune, Maharashtra, has also been requested to issue an order for winding up the affairs of The CKP Cooperative Bank Ltd., Mumbai, and appoint a liquidator for the bank,” RBI said in a late evening statement on Saturday.
The depositors of the bank will get a maximum of ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), as per law. The deposit insurance cover was increased to ₹5 lakh from ₹1 lakh earlier this year. The bank has a deposit base of ₹485.56 crore, as on November 2019.
“The financial position of the bank is highly adverse and unsustainable. There is no concrete revival plan or proposal for merger with another bank. Credible commitment towards revival from the management is not visible,” the RBI said, giving reasons for the decision.
The bank has negative networth of ₹239.2 crore. It has a customer base of 1,34,167 and has eight branches spread across Mumbai and Thane districts.
The banking regulator said the bank did not satisfy the requirement of minimum capital and reserves and was not in a position to pay its present and future depositors.
“The affairs of the bank were and are being conducted in a manner detrimental to public interest and interest of the depositors, and the general character of the management of the bank is prejudicial to the interest of depositors as also public interest,” RBI said.
The banking regulator observed that the bank’s efforts for revival have been ‘far from adequate’ though the bank has been given ample time and opportunity and dispensations.
“No merger proposal has been received in respect of the bank. Thus, in all likelihood, public interest would be adversely affected if the bank were allowed to carry on its business any further,” the RBI said.
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Brisbane builder goes bust with workers owed $2.5m - Central Queensland news
Central Queensland news
Brisbane builder goes bust with workers owed $2.5m
Central Queensland news
The company's collapse is the latest in a series of building company failures and comes as the Reserve Bank of Australia singled out the Brisbane property market as an area of concern. Worrells partner Lee Crosthwaite told creditors that CKP had four ...
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