MUCBF appeals CKP coop Bank depositors not to withdraw funds to avoid RBI action

Stepping in to support the CKP Cooperative Bank, Maharashtra Urban Co-op Banks’ Federation (MUCBF) has appealed the bank's depositors not to withdraw their deposits, else a moratorium from the RBI was imminent.

Addressing the depositors of the troubled bank here today, chairman of the Federation Vidyadhar Anaskar said that unlike some other banks, there has been no swindling of funds in this bank and the Reserve Bank recently appointed an administrator for some violation of norms by the previous Board of Directors. However, the RBI action led to many depositors withdrawing their funds with about Rs 100 crore being withdrawn since the administrator was appointed. Anaskar told depositors that the bank's position was sound. However, if the depositors continue to withdraw, the bank may face liquidity crunch and in that case, the RBI could impose moratorium and put a cap on further withdrawals. He also said that the Federation had never taken up the case of any co-op bank against which the RBI had taken action but in case of CKP Bank the issue was different and hence the Federation was supporting it, he said. The bank itself had also come up with an advertisement recently saying that its position was sound and the depositors' money was secured.

The bank had deposits of Rs 1023 crore as of March 2012 and advances of Rs 622 crore and net non performing assets of 5.65 per cent.