Case Brief
The Reserve Bank of India cancelled the licence of Shri Kamdar Sahakari Bank Ltd., Bhavnagar, after concluding that the bank had ceased to be solvent and could not be revived despite efforts made in consultation with the Government of Gujarat. RBI noted that statutory inspections showed the bank’s financial position had first become impaired and then precarious, and that the bank had already been placed under directions from July 10, 2009 because of liquidity problems. After issuing a show-cause notice and examining the reply, RBI found no viable turnaround plan or means to meet regulatory requirements. The order was issued after the close of business on November 06, 2009, and the Registrar of Co-operative Societies, Gujarat was requested to start winding-up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location