It may be recalled that the Reserve Bank of India decided to cancel the licence of Prudential Cooperative Bank Ltd., Secunderabad (Andhra Pradesh) as a final step after examining all the options for revival of the bank and in order to protect the interest of the depositors. The Reserve Bank had, after finding the financial position of Prudential Cooperative Bank precarious in 2002, placed the bank under directions restricting its operations. The bank, however, continued to face problems. Severe liquidity problems in March 2003 prompted the Reserve Bank to tighten its directions and supercession of its Board of Directors. Despite some recoveries, the financial position of the bank continued to deteriorate. The reconstruction schemes were also found to be not feasible in terms of restoring solvency. The latest inspection of the bank showed that its deposits were getting eroded as paid-up capital and reserves were in the negative. The continuance of the bank was, therefore, untenable. With the cancellation of its licence and taking it into liquidation, the process of paying the depositors of Prudential Cooperative Bank the amount insured as per the DICGC Act will now be set in motion.

For any clarifications, depositors may approach Dr Deepali Pant Joshi, Chief General Manager, Reserve Bank of India, Hyderabad. Her contact details are as below