Under Deposit insurance scheme, on liquidation, every depositor is entitled to repayment of his/her deposits up to Rs5 lakh from DICGC. In other words, going by RBI communication, 99.2 percent of the depositors of CKP bank are in the less than Rs5 lakh deposit category.
About 99.2 percent of the 1,32,170 depositors of CKP Co-op Bank, whose licence was cancelled on Saturday, will get their full deposits back under the deposit insurance and credit guarantee scheme (DICGC), a Reserve Bank of India (RBI) spokesperson said on May 3.
"CKP Co-op Bank Ltd, Mumbai has been under All Inclusive Directions of RBI since 2014. As there was no scope for a revival of the bank, its licence has been cancelled. Out of 1,32,170 depositors of the bank, about 99.2 percent will get full payment of their deposits from DICGC," said Yogesh Dayal, chief general manager, department of communication at RBI said in a tweet.
Under Deposit insurance scheme, on liquidation, every depositor is entitled to repayment of his/her deposits up to Rs5 lakh from DICGC. In other words, going by RBI communication, 99.2 percent of the depositors of CKP Bank are in the less than Rs 5 lakh deposit category.
As on April 30, the bank had a loan book of Rs 158 crore and deposits of Rs 486 crore. The bank had a negative net worth of Rs 239 crore, according to the latest figures available. Nearly, 97 percent of its loans had turned to NPAs, a lot of which are loans given to small and mid-sized real estate developers.
CKP Bank has its head office at Matunga, Mumbai and has eight branches spread across Mumbai and Thane districts. "The Bank has attained an important status in the co-operative banking sector, by crossing various milestones of quality and standards and by setting new standards of its own," its website says.
The lender is the latest cooperative bank to lose its licence on account of financial failure. Cancelling its licence, the RBI said that the financial position of the bank is highly adverse and unsustainable. The adverse financial position was only one of the many reasons behind the cancellation of the licence. The bank, as per RBI's observation, also did not have any concrete revival plan or proposal for a merger with another bank.First Anniversary Offer: Subscribe to Moneycontrol PRO’s annual plan for ₹1/- per day for the first year and claim exclusive benefits worth ₹20,000. Coupon code: PRO365
