The board of directors of the Hindu Urban Cooperative Bank, Pathankot, has been placed under suspension on complaints of "mismanagement", an official said today.
"They (directors of the board) have also been put on notice to explain as to why action should not be taken against them as they have failed to perform their expected duties in a transparent and professional manner," a Punjab government release said here today quoting the Cooperative Societies Punjab Registrar Arvinder Singh Bains.
The release said the financial health of the bank has been severely eroded thereby putting the interest of the depositors of the bank at a grave risk.
The department received complaints from the public and representations from the staff of the bank regarding alleged mismanagement by the board of directors, Bains said in the release.
"A detailed enquiry was got conducted by the Joint Registrar, Cooperative Societies, Jalandhar Division. This enquiry pointed out that Reserve Bank of India while conducting the inspection of the bank has put the bank on notice under Self Corrective Action for the second consecutive year."
Disclaimer: No Business Standard Journalist was involved in creation of this content