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Rs100cr will be recovered in four years, says Rupee Bank liquidator
Dhananjay Doiphode was appointed liquidator by Maharashtra cooperative department after the Reserve Bank of India (RBI) cancelled the bank license on October 31
Rupee Co-operative Bank liquidator Dhananjay Doiphode has said that the bank has set sights on recovery of arrears estimated to be over ₹100 crores during the next three to four years.
Doiphode was appointed liquidator by Maharashtra cooperative department after the Reserve Bank of India (RBI) cancelled the bank license on October 31. “The bank has reserves worth ₹606 crores and had a loan book of ₹283 crores,” he said.
He further informed that till September-end ₹5.13 cores was recovered while the aggregate loss was ₹612 crores. As many as 5.36 lakh depositors are yet to get a refund of ₹222 crores.
The appellate authority (in the finance ministry) has dismissed the appeal filed by Pune-based Rupee Co-operative Bank against the order, cancelling the banking licence in August this year.
The RBI, on August 10 cancelled the Pune-based bank’s licence as the lender did not have adequate capital and earning prospects.
The Deposit Insurance and Credit Guarantee Corporation (DICGC) has paid about ₹700 crore to eligible depositors. The liquidator has been mandated with the obligation to return the money to DICGC, based on recoveries and liquidation.
In August 2021, the RBI declined the merger proposal of the Maharashtra State Co-operative Bank with Rupee Co-operative Bank while in December 2021, the country’s Saraswat Co-operative Bank had shown an interest in the merger with Rupee Co-operative Bank.
