More Cooperative Banks fail in the western region

The RBI has placed Annasaheb Karale Janata Sahakari Bank (Sangli) under moratorium, adding to the list of failed co-operative banks in the western region.

The regulator’s decision to impose full restrictions on the UCB comes barely a month after the moratorium on Pune-based Shree Suvarna Cooperative Bank. Shree Suvarna has a deposit base of Rs 820 crore. Annasaheb Karale, on the other hand, has a deposit base of around Rs 90-100 crore.

Weak co-operative banks are facing panic withdrawals, leading to a liquidity crisis in the bank, and ultimately, getting into moratorium.

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