The Reserve Bank of India has suspended operations of the CKP Cooperative Bank and cancelled its license on account of its ‘adverse and unsustainable’ financial position. The bank will now be liquidated and its nearly 1.5 lakh depositors will be eligible for maximum recovery to the tune of Rs 5 lakh. The limit was increased recently from Rs 1 lakh under the Deposit Insurance and Credit Guarantee Corporation scheme. The RBI said 99.2% of the bank’s 1.32 lakh customers have accounts with funds less than Rs 5 lakh, and they will be eligible for full recovery under the DICGC scheme when the bank is liquidated. The bank, based in Dadar in Mumbai, has a loan book of Rs 158 crore and deposits of Rs 486 crore. It had a negative net worth of Rs 239 crore. It was founded in 1915 has 6 branches across Mumbai and Thane. RBI had in April 2014 prohibited the bank from taking deposits and issuing new loans and capped withdrawals after it found lapses in its administration. Its board was also superseded and a new administration was installed. The bank has a long list of wilful defaulters, including several Mumbai-based developers, which owe the bank anywhere between Rs 30 lakh to Rs 30 crore.
