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The Reserve Bank of India (RBI) has cancelled the licence of Surendranagar Peoples Co-operative Bank. The bank had been put under the jurisdiction of the government administrator since August 2006 following liquidation problems.
District Registrar A K Bhatt said the RBI has cancelled the
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 banks assets before distributing the deposits back to the account holders.
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