Rupee Bank gets an administrator

In a rapid turn of events, the Reserve Bank of India on Tuesday appointed Sanjay Kumar Bhosale joint director sugar and Vidyadhar Anaskar, chairman of Vidya Sahakari bank, as the administrator of the beleaguered Rupee Co-operative Bank limited and also dismissed the present board of directors.

Meanwhile, Madhukar Chowdhury, commissioner of co-operative told Newsline that the option of a possible merger of the beleaguered bank with another bank in the near future can't be ruled out.

On Saturday, the RBI had put in restrictions on the bank under Section 35 A of the Banking Regulation Act, 1949, in view of the precarious financial condition of the bank for six months. These restrictions had meant that the depositors would be allowed to withdraw Rs 1,000 once in above six months.

This action had spread panic amongst the depositors who had thronged the various branches of the bank on Monday.

Bhosale said, "I would soon be issuing a statement about the bank and that note would be self explanatory." Bhosale, who took charge late on Tuesday evening, confirmed his appointment and stated that he would require a week's time to understand the issues plaguing the bank and set up the future course of action. Chowdhury, on his part stated that the co-opertaive commissionarate would take all steps to revive the bank. "In case all such steps fail we will look for merger of the bank with financially suitable banks who can make good the looses of Rupee co-operative bank," he said.

He stated that although they have not received any such proposals, chances are there that banks might have approached the RBI directly with their proposal of merger.

The bank had Rs 350 crore in bad loans which it had failed to recover. The bank had more than Rs 1,700 crore of fixed deposits and 4,200 shareholders.

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