RBI supersedes Board of Directors of Abhyudaya Cooperative Bank for 12 months

The action against the Abhyudaya Cooperative Bank Ltd was needed due to "certain material concerns emanating from poor governance standards" observed in the bank.

The Reserve Bank of India (RBI) on Friday superseded the Board of Directors of Abhyudaya Cooperative Bank Ltd for a period of 12 months. Consequently, the RBI has appointed Satya Prakash Pathak, former Chief General Manager of State Bank of India as "Administrator" to manage the affairs of the bank during this intervening period.

The central bank has also appointed a "Committee of Advisors" to assist the Administrator in discharging his duties. "The members of the Committee of Advisors are Shri Venkatesh Hegde (former General Manager, SBI); Shri Mahendra Chhajed (Chartered Accountant); and Shri Suhas Gokhale (former MD, COSMOS Co-operative Bank Limited)," RBI said in a statement.

The action against the Abhyudaya Cooperative Bank Ltd was needed due to "certain material concerns emanating from poor governance standards" observed in the bank. No business restrictions have been placed by the RBI and the bank shall continue to carry on its normal banking activities, though under the guidance of the administrator. (ANI)