RBI Reconstitutes Committee for Abhyudaya Cooperative Bank

The Reserve Bank of India (RBI) has made changes to the Committee of Advisors for Abhyudaya Cooperative Bank, based in the city. This move comes after the RBI took control of the bank’s operations last November due to concerns about its management.

Mahendra Chhajed, a member of the committee, has resigned due to personal reasons, effective from March 4, 2024. As a result, Devendra Kumar has been appointed as the new member of the committee with immediate effect. Venkatesh Hegde, a former General Manager at SBI, and Suhas Gokhale, former MD of COSMOS Co-operative Bank Limited, are the other members of the committee.

Satya Prakash Pathak, a former chief general manager at the State Bank of India, is currently serving as the administrator of the bank. The RBI took control of Abhyudaya Cooperative Bank last year due to concerns about poor governance. Despite this, the bank has been allowed to continue its normal banking activities without any restrictions.

When the RBI intervened, Abhyudaya Cooperative Bank had deposits totalling Rs 10,800 crore and a loan book of Rs 6,400 crore. The bank’s headquarters are located in Parel, central Mumbai, an area historically associated with the city’s textile mills.

The reconstitution of the committee underscores the RBI’s efforts to address governance issues within the banking sector and ensure the smooth functioning of financial institutions.