The Hindu Business Line : Maharashtra appoints administrator to take charge of Pune-based co-op bank

The Cooperative Commissioner of Maharashtra has dismissed the board of the Pune-based Shree Suvarna Cooperative Bank and appointed an administrator to look after the day-to-day functioning of the bank.

The decision follows the erosion of the bank's networth. The bank's capital adequacy ratio had dipped to 4 per cent against the norm of 9 per cent. Depositors can withdraw only Rs 1,000 per account.

The administrator was appointed on a directive from the Reserve Bank of India.

Merger plans

According to reports, the bank had earlier announced its intention to merge with Cosmos Cooperative Bank. The announcement of merger plans last week had set off panic among depositors, who have withdrawn large amounts since last Sunday.

According to Mr B.G. Yashod, Additional Commissioner and Special Registrar of Cooperative Societies, Maharashtra, the State Government is open to the takeover of the sick bank by any other healthy bank.

Shree Suvarna bank has a deposit of Rs 800 crore and has 12 branches across Maharashtra.

SSCB is the second bank from Maharashtra to be declared sick this month. On September 2, RBI had placed the Satara-based United Western Bank.

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Maharashtra appoints administrator to take charge of Pune-based co-op bank