The Registrar of Co-operative Societies, Odisha has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The bank was granted a licence by RBI on October 21, 2009. The latest statutory inspection of the bank conducted in March, 2013, revealed that the bank is in deep red and any chance of its revival is next to impossible.
The net loss of the bank was assessed at Rs 2267.21 lakh during 2012-2013. In view of the large amount of NPAs, substantial accumulated losses, poor chances of recovery for improvement in financial health of the bank, revival prospects of the bank in the near future are bleak.
The bank had taken large amount from unrealized interest on NPA accounts to operating income since long and was overstating its profit. The loans and advances outstanding against the ex-directors are also huge.
In the press note RBI says, “it took the extreme measure of cancelling the licence of the bank in the interest of bank’s depositors. With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of The Baripada Urban Co-operative Bank Ltd., Baripada (Odisha) the amount insured as per the DICGC Act, will be set in motion subject to the terms and conditions of the Deposit Insurance Scheme.
the management whether elected or nominated considered the bank as a milching cow and disbursed loans without proper security from the loanee. the special audit report must be referred to economic offence wing of orissa crime branch. at present the management in charge mr. rajesh prabhakar patil,ias, collector & dm, mayurbhanj district had already done highly appreciable loan collection by enacting the sarfaesi 2002 act. earlier the state cooperative department though vested with power to attach mortgaged properties of defaulter loanee is sleeping like kumbhakarna emphaticaally not a single defaulter loan is executed by cooperative department. vigilance and economic offence wing of orissa crime branch simultaneously will reveal exploding mysteries. hope against hope is the thinking of shareholders & depositors. the temporary staffs are paid wages less than daily labourers. even god is helpless.
such public finance institutions are exploited for making political base of the management elected or nominated. disbursement of huge amount loans without any security is surprising. why audit recovery from member of board of directors is not speeding up? rbi and cooperative audit wing of orissa government were sleeping without hesitation! emphatically this particular bank was awarded as the best urban cooperative bank of the state more than thrice!!! basing on which parameters the award is considered???? it is high time for CBI probe which will reveal many mysteries. bye bye baripada urban cooperative bank forever,
Can new height be achieved if the sprit is wounded…
After cancellation of license the next best logical step is winding up of the bank ,so that the depositors will get something from the leftover balance.But the govt is conducting its election with a hope to function it again.When the depositors have no faith in it,Is this possible…???So strong steps should be taken towards recovery and immediate steps for repayment to the depositors (may be in partial payment ).