sunandaC

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GTB adds to the muddle created by co-op banks

The virtual collapse of the Global Trust Bank (GTB) has once again eroded depositor confidence in the banking system, already hit by several scams involving cooperative banks during 2002-04.

While many of the cooperative banks are on the road to recovery, some continue to struggle. Financial irregularities, mismanagement and involvement in the Rs. 252 crore- government securities scam led to the supercession of the boards of directors of over 17 co-operative banks in the state after February 2002.

This scam, which rocked the co-operative banking sector, involved the payment of money by co-operative banks to brokers like Home Trade and Giltedge Shares for investment in government securities.

While the brokers accepted the money, the banks failed to get physical possession of the securities.

Boards of directors of Nagpur (Rs 150 crore), Wardha (Rs 25 crore) and Osmanabad ( Rs 30 crore) district central co-operative banks were superseded, along with Sri Sadguru Jangli Maharaj (Rs 27 crore), Pavna (Rs 59.22 lakh), Suvarnayug (Rs 5.65 crore), Amravati People's (Rs 9.5 crore) and Raghuvanshi (Rs 8 crore) co-operative banks due to the securities scam.

According to co-operation department officials, the Reserve Bank of India (RBI) has given the green signal for holding elections in the Pavna co-operative bank. The bank achieved a first of sort in recovery, when it recovered Rs 59.22 lakh from Harischandra Gat & Co for investing in IDBI bonds.

"The bank has now become stronger and made a profit of Rs 1.13 crore in the year-ended March 31, 2004. It's net non-performing assets (NPAs) are now zero," officials said.

The Jangli Maharaj bank has succeeded in reducing its loss from Rs 45 crore to Rs 15 crore as of March 2004.

"The People's co-operative bank and Suvarnayug bank have done well but Rupee, Agrasen and Citizens' co-operative banks are struggling, though further decline has been arrested," officials said.

Another bank which faced supersession of board of directors in 2003 was the Jaihind co-operative bank. The RBI cancelled the licence of Adinath co-operative bank and a liquidator appointed.
 

bhautik.kawa

New member
GTB adds to the muddle created by co-op banks

The virtual collapse of the Global Trust Bank (GTB) has once again eroded depositor confidence in the banking system, already hit by several scams involving cooperative banks during 2002-04.

While many of the cooperative banks are on the road to recovery, some continue to struggle. Financial irregularities, mismanagement and involvement in the Rs. 252 crore- government securities scam led to the supercession of the boards of directors of over 17 co-operative banks in the state after February 2002.

This scam, which rocked the co-operative banking sector, involved the payment of money by co-operative banks to brokers like Home Trade and Giltedge Shares for investment in government securities.

While the brokers accepted the money, the banks failed to get physical possession of the securities.

Boards of directors of Nagpur (Rs 150 crore), Wardha (Rs 25 crore) and Osmanabad ( Rs 30 crore) district central co-operative banks were superseded, along with Sri Sadguru Jangli Maharaj (Rs 27 crore), Pavna (Rs 59.22 lakh), Suvarnayug (Rs 5.65 crore), Amravati People's (Rs 9.5 crore) and Raghuvanshi (Rs 8 crore) co-operative banks due to the securities scam.

According to co-operation department officials, the Reserve Bank of India (RBI) has given the green signal for holding elections in the Pavna co-operative bank. The bank achieved a first of sort in recovery, when it recovered Rs 59.22 lakh from Harischandra Gat & Co for investing in IDBI bonds.

"The bank has now become stronger and made a profit of Rs 1.13 crore in the year-ended March 31, 2004. It's net non-performing assets (NPAs) are now zero," officials said.

The Jangli Maharaj bank has succeeded in reducing its loss from Rs 45 crore to Rs 15 crore as of March 2004.

"The People's co-operative bank and Suvarnayug bank have done well but Rupee, Agrasen and Citizens' co-operative banks are struggling, though further decline has been arrested," officials said.

Another bank which faced supersession of board of directors in 2003 was the Jaihind co-operative bank. The RBI cancelled the licence of Adinath co-operative bank and a liquidator appointed.

Hey Sunanda,

Here i am sharing information on A Primary (Urban) Co-Operative Bank, so check and download.
 

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