Case Brief
The Reserve Bank of India cancelled the licence of Kasundia Co-operative Bank Ltd., Howrah (West Bengal), effective September 6, 2013. RBI stated that the bank had ceased to be solvent and that the continued uncertainty was inconveniencing depositors. The release also notes a long deterioration in the bank’s financial condition, including heavy deposit erosion, negative net worth, poor asset quality, liquidity stress, violations of RBI directions, and no credible revival or merger proposal. Following the cancellation, the bank was prohibited from carrying on banking business and the Registrar of Co-operative Societies, West Bengal was requested to initiate winding-up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Howrah, West Bengal