RBI cancels licence of Surendranagar co-operative bank

license and further action will be taken once an officer is appointed by the state government in a day or two. The apex bank cancelled the license with effect from August 31.

Bank manager D M Rathod said the bank has total 60,000 depositors and deposits to the tune of Rs 65 crore. As many as 59,200 account holders,who have deposits of less than Rs 1 lakh will soon get their money back,while the remaining 800 account holders will have to wait for a while.

As per the 2008 RBI inspection,the net worth of the bank had dropped to minus Rs 2,217.23 lakh.

The gross and net non-performing assets of this bank were 63.5 and 56 per cent respectively. The bank was put under the administrator for the revival since August 2006.

A meeting between the bank authorities,officials and account holders was held on Saturday in the wake of the RBI letter announcing cancellation of the license. It was decided to carry out a fresh assessment of the bank’s assets before distributing the deposits back to the account holders.