CO-OPERATIVE BANK FAILURES TALLY HITS 32 IN 2009

 As many as 32 co-operative banks in the country folded up last year forcing the depositors to invoke insurance guarantee to recover part of their losses. Deposit Insurance and Credit Guarantee Corporation (DICGC), the Reserve Bank''s credit insurance arm, paid nearly Rs 482 crore to these 32 cooperative banks in the period between January and December, 2009, to settle the dues of the depositors. 

A maximum of Rs 1 lakh is paid to a depositor in case of failure of banks under the DICGC insurance norms. Maharashtra-based banks -Vasantdada Shetkari of Sangli was paid the maximum of Rs 159.93 crore, followed by Shri P K Anna Patil Janata Bank (Rs 56.48 crore), The South Indian Co-operative Bank Ltd of Mumbai (Rs 35.40 crore) and Rohe Ashtami Sahakari Bank Ltd (Rs 34.94 crore).

Other banks which closed down during the year were, Ajit Sahkari Bank for which the DICGC paid Rs 25.72 crore as claim, Bhavnagar Mercantile Co-operative Bank (Rs 24.52 crore), Chalisgaoan Cooperative Bank (Rs 14.97 crore) and Hirekerur Bank (Rs 13.73 crore).


Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/Co-operative-bank-failures-tally-hits-32-in-2009/articleshow/5572046.cms