The Reserve Bank of India extended the period of directions on the Karnataka based Sri Guru Raghavendra Sahakara Bank for a further period of three months.
Issuing a press release in this connection, the RBI said, “Accordingly, the Reserve Bank of India, in exercise of the powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby extends the Directive for a further period of three months from the close of business on August 10, 2024 to the close of business on November 10, 2024, subject to review the release stated.
“All other terms and conditions of the Directives under reference shall remain unchanged”, it further added.
It is gathered that the bank registered an accumulated loss of Rs 2,777 crore and a negative net worth of around (-) Rs 2,400 crore as of 31st March 2023, and there is very little opportunity that it will wipe out or reduce its losses in the coming days.