The Reserve Bank of India (RBI) has superseded the Board of Directors of New India Co-operative Bank Ltd., Mumbai, for a period of 12 months under Section 36AAA read with Section 56 of the Banking Regulation Act, 1949. This action follows governance concerns within the bank. Shri Shreekant, former Chief General Manager of SBI, has been appointed as the Administrator to oversee the bank’s operations. A Committee of Advisors, consisting of Shri Ravindra Sapra (former GM, SBI) and Shri Abhijeet Deshmukh (Chartered Accountant), has also been appointed to assist him.
This development follows RBI’s directive on February 13, 2025, which imposed operational restrictions on the bank under Section 35A of the Act. The RBI has cited governance issues as the reason for the board’s removal, reinforcing its regulatory intervention to safeguard the interests of depositors and ensure financial stability.
Reserve Bank of India
Date : Feb 14, 2025
Supersession of Board of Directors of New India Cooperative Bank Ltd., Mumbai
In exercise of the powers conferred under Section 36 AAA read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), the Reserve Bank has today superseded the Board of Directors of New India Cooperative Bank Ltd., Mumbai, for a period of 12 months. Consequently, the Reserve Bank has appointed Shri Shreekant, former Chief General Manager of State Bank of India (SBI) as ‘Administrator’ to manage the affairs of the bank during this period. The Reserve Bank has also appointed a ‘Committee of Advisors’ to assist the Administrator in discharging his duties. The members of the Committee of Advisors are Shri Ravindra Sapra (former General Manager, SBI) and Shri Abhijeet Deshmukh (Chartered Accountant).
The above action is necessitated due to certain material concerns emanating from poor governance standards observed in the bank. Attention is also drawn to the Press Release 2024-2025/2154 dated February 13, 2025, published by Reserve Bank on its website for information of the public, that certain directions have been issued to this bank, under sub section (1) of Section 35 A of the Banking Regulation Act, 1949, read with Section 56 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies).
(Puneet Pancholy)
Chief General Manager
Press Release: 2024-2025/2162
