17 cooperative banks go insolvent during Apr-Sep

Failing cooperative banks have cost Reserve Bank’s credit insurance arm dearly as it had to shell out over Rs 123.37 crore in the first half of this fiscal toward payment to depositors of 17 insolvent banks. The 17 cooperative banks have failed to repay deposits to customers during April-September.

Under Deposit Insurance and Credit Guarantee Corp insurance norms, a maximum of Rs 1 lakh is paid to a depositor in case the bank goes insolvent. The DICGC paid the maximum amount of Rs 36.70 crore to Prabhani Peoples Cooperative Bank. This was followed by Sriram Sahkari Bank (Rs 29.80 crore), Purna Nagri Sahkari BL (Rs 4.75 crore), Lord Balaji Bank (Rs 2 crore) and Yashwant Sahkari Bank (Rs 0.48 crore). All the five banks were based in Maharashtra. The five big lenders from Gujarat are Sarvodaya Nagrik Sahakari Bank (Rs 15.95 crore), Karamsad CBL (Rs 12.28 crore), Sindh Mercantile CBL (Rs 10.24 crore), Umreth Co-operative Urban Bank (Rs 2.2 crore) and Adarsh Mahila CBL (Rs 1.28 crore).