RBI reconstitutes 'committee of advisors' of Abhyudaya Cooperative Bank

In November last year, RBI had superseded the Board of Directors of Abhyudaya Cooperative Bank for one year citing poor governance standards

The Reserve Bank of India (RBI) on Thursday appointed Devendra Kumar to the ‘Committee of Advisors’ of Abhyudaya Cooperative Bank following the resignation of Mahendra Chhajed.

Chhajed tendered his resignation from the Committee effective from March 4, 2024, due to personal reasons, RBI said in a statement. The newly appointed Devendra Kumar is the former Chief General Manager of the State Bank of India (SBI).

In November last year, the RBI had superseded the Board of Directors of Abhyudaya Cooperative Bank for one year, citing poor governance standards and appointed Satya Prakash Pathak, former Chief General Manager of SBI, as Administrator to manage the affairs of the bank during this period.

The RBI said that it has not placed any restrictions on the bank’s business and the lender shall continue to carry on its normal banking activities under the guidance of the administrator.

The 'Committee of Advisors' will now comprise Devendra Kumar, Venkatesh Hegde (former General Manager, SBI), and Suhas Gokhale (former Managing Director, COSMOS Co-operative Bank).

The lender started operations in 1964 and was conferred with ‘scheduled bank status’ by the RBI in September 1988. On January 11, 2007, the bank was registered as a Multi­State Co-op Bank by the Central Registrar, New Delhi. The bank’s operations are confined to three states -- Maharashtra, Gujarat, and Karnataka.

According to the Mumbai-based bank’s website, it has 109 branches. Out of which, 18 branches provide service seven days a week; the bank also has 113 ATMs.

As of March 31, 2021, the bank’s deposits had reached up to Rs 10,952 crore, up from Rs 10,838 crore in the year-ago period. The advances rose to Rs 6,711 crore as of March 31, 2021, from Rs 6,654 crore as of March 31, 2020.