RBI reconstitutes Committee of Advisors for Abhyudaya Cooperative Bank

The Reserve Bank of India has reconstituted the three-member Committee of Advisors of Abhyudaya Cooperative Bank Ltd, inducting Devendra Kumar (former Chief General Manager, State Bank of India) in place of Mahendra Chhajed (Chartered Accountant), who resigned.

On November 24, 2023, RBI superseded the bank’s Board of Directors for 12 months and appointed Satya Prakash Pathak (former Chief General Manager of State Bank of India ) as “Administrator” to manage the affairs of the bank during this period.

A “Committee of Advisors” was also constituted to assist the Administrator in discharging his duties.

Besides Kumar, the Bank’s Committee of Advisors now comprises Venkatesh Hegde (former General Manager, SBI) and Suhas Gokhale (former MD, COSMOS Cooperative Bank Limited).

In its November 2023 statement, RBI said its action was necessitated due to certain material concerns emanating from poor governance standards observed in the bank.

“No business restrictions have been placed by RBI and the bank shall continue to carry on its normal banking activities as is hitherto, under the guidance of the Administrator,” the central bank said.

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