Case Brief
The Reserve Bank of India cancelled the banking licence of Anyonya Co-operative Bank Ltd., Vadodra, Gujarat, after determining that the bank had ceased to be solvent and that revival efforts had failed. The release says the bank had a severely deteriorated financial position, with negative CRAR and net worth, erosion of deposits, default in maintaining SLR, non-compliance with key provisions of the Banking Regulation Act, 1949 (AACS), violation of Section 6 through an MoU with Religare Enterprises Ltd., and inadequate identification and recovery of NPAs. RBI had earlier issued a show-cause notice under Section 22 of the Act, but the bank’s response and revival proposal were not found satisfactory. In the absence of any concrete, feasible revival or merger plan, RBI cancelled the licence and requested the Registrar of Co-operative Societies, Gujarat to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location