Shriram Bank still waiting for liquidator

A month after the Reserve Bank of India (RBI) cancelled the banking licence of the Shriram Co-operative Bank (SCBL), the state co-operatibve department is yet to appoint a liquidator for the bank, which is in turn affecting the speed of the liquidation.

On June 13, the RBI had cancelled Shriram Bank's licence, after its failure to recover outstanding loans worth Rs 110 crore against a deposit base of Rs 90 crore.

Even the appointment of an administrator had not led to satisfactory loan recovery, the RBI felt. Three days after cancelling the licence, the state co-operative department had announced the liquidation of the bank. But even after a month, a liquidator has not been appointed.

Upon the bank's liquidation, every depositor is entitled to repayment of deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). Shriram Bank has 21,637 depositors who have deposits up to Rs 1 lakh. Total deposits stands at Rs 34.74 crore, sources said.

"We met the commissioner of the co-operative department on June 28, and urged him to appoint a liquidator at the earliest. But he has still not taken any action in this regard," said D L Karad, president, Bank Bachav Samiti.