More than 90% CKP Co-op Bank depositors to get back money, says RBI

The RBI cancelled the licence of CKP Co-op Bank on April 28, and notified the cancelletaion on its website on Saturday. Illustration: Binay Sinha
More than 99 per cent of the depositors in CKP Co-op Bank will get full payment of the deposits back from the Deposit Insurance and Credit Guarantee Corporation (DICGC), a senior official of the Reserve Bank of India (RBI) tweeted on Sunday.

The RBI cancelled the licence of CKP Co-op Bank on April 28, and notified the cancellation on its website on Saturday. It said deposits up to Rs 5 lakh are guaranteed by the DICGC. This portion is 99.2 per cent.
“CKP Co-op Bank, Mumbai, has been under the all-inclusive directions of the RBI since 2014. As there was no scope for revival of the bank, its licence has been cancelled. Out of 132,170 depositors of the bank, about 99.2 per cent will get full payment of their deposits from their DICGC,” tweeted Yogesh Dayal, chief general manager of RBI.

RBI, in a statement on Saturday, had said there was no concrete revival plan or proposal for merger with another bank and that credible commitment towards revival from the management was not visible.

The bank failed to meet the regulatory requirement of maintaining a minimum capital adequacy ratio of 9 per cent and reserves. The RBI said the lender was not in a position to pay its present and future depositors.

The affairs of the bank were being conducted in a manner detrimental to public interest and the interests of depositors, the RBI statement said. CKP Bank's NPA is more than 97 per cent as it lent to real estate players in and around Mumbai who did not pay back. The bank's total deposits was Rs 485 crore, but the net worth was a negative Rs 239 crore.

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