13 cooperative banks go belly up in 2012-13
As many as 13 cooperative banks failed in 2012-13, resulting in credit insurance company DICGC paying nearly Rs 160 crore to depositors.
New Delhi: As many as 13 cooperative banks failed in 2012-13, resulting in credit insurance company DICGC paying nearly Rs 160 crore to depositors.
Among the 13 cooperative banks, which failed to repay deposits to customers, nine are from Maharashtra, two from Gujarat and one each from Andhra Pradesh and Odisha.
Under the norms of Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI), a maximum of Rs 1 lakh is paid to a depositor in case a bank goes insolvent.
The Reserve Bank's credit insurance arm has paid Rs 159.85 crore to depositors of 13 cooperative banks which went bankrupt during April 2012 to March 2013, according to DICGC.
The DICGC paid the maximum amount of Rs 54.88 crore to Bhandari Co-op Bank Ltd of Maharashtra. This was followed by another Maharashtra-based lender Solapur Nagari Audyogik Sahakari Bank whose depositors were paid Rs 45.76 crore.
Besides, the credit insurance company paid Rs 23.99 crore to depositors of Siddhartha Sahakari Bank Ltd and also Rs 10.05 crore to the account holders of Bhusawal Peoples Co-op. Bank Ltd of Maharashtra.
At the same time, the insurer paid Rs 7.77 crore to Dhenkanal Urban Co-op Bank Ltd of Odisha and Rs 4.54 crore to Boriavi Peoples Co-op Bank Ltd of Gujarat.
During 2011-12, 18 cooperative banks had closed operations. As a result DICGC paid Rs 277.31 crore to the depositors of these banks.