The Reserve Bank of India (RBI) will keep Abhyudaya Co-operative Bank Ltd.'s board superseded for a fourth year from Nov. 24, extending a 2023 intervention over governance concerns at the Mumbai-based lender.
The RBI announced the extension Nov. 9. It takes effect after the current order expires at close of business Nov. 23. The central bank said its review led it to conclude that keeping the administrator-led arrangement for another year would serve the public interest.
Satya Prakash Pathak will remain administrator, supported by the RBI's Committee of Advisors. The committee includes Venkatesh Hegde, Devendra Kumar and Suhas Gokhale.
The RBI first superseded the board for 12 months on Nov. 24, 2023, citing material concerns about governance standards. It based the action on Sections 36AAA and 56 of the Banking Regulation Act, 1949. The RBI extended the arrangement for another year in both 2024 and 2025.
Abhyudaya describes itself as a multistate scheduled co-operative bank operating in Maharashtra, Gujarat and Karnataka. When the RBI intervened in 2023, it said it had placed no restrictions on the bank's business and that normal banking activities could continue under Pathak's guidance.
The latest notice does not address whether the bank's restriction status has changed. It also gives no conditions or date for restoring a board.
