BBN Bureau
Restrictions first imposed in November 2018
KOCHI/March 08-2022: The Reserve Bank of India (RBI) has extended the Directions to the Adoor Co-operative Urban Bank Ltd, Adoor, for a further period of three months, from March 10, 2022 to June 09, 2022, subject to review.
RBI said all other terms and conditions of the Directive under reference, as modified from time to time, shall remain unchanged.
The Adoor UCB was first placed under Direction on November 2. 2018 and it is now about three and half years the bank has been under the RBI’s supervision.
The more than 90 years’ old urban cooperative bank has been put on all-inclusive restrictions with regard to withdrawal of deposits and sanctioning of loans.
ACUB with an account holder base of 5000 sits on a deposit base of about Rs10 crore.
Prior to the imposition of the restrictions, the bank had been under RBI’s close monitoring for its non-adherence to the key benchmarks and ratios.
As per the bank’s statement for September, 2018, its NPA ratio was 18.74 per cent and capital to risk assets ratio (CRAR) was -24.84 per cent as against the RBI’s prescribed minimum ratio of 9 per cent (in November 2018).
The statement from RBI said it was satisfied that in the public interest, it is necessary to extend the period of operation of the aforesaid Directions.
“Accordingly, vide the Directive DOR.MON/D-69/12.26.004/2021-22 dated March 07, 2022, in exercise of powers vested in it under sub-section (1) of Section 35 A, the validity of which was last extended up to March 09, 2022, shall continue to apply to the bank for a further period of three months, from March 10, 2022 to June 09, 2022, subject to review,” the RBI statement said.
