RBI extends Abhyudaya Bank supersession by another year
The Hindu - Business/Economy · Published 9 November 2026 · Last updated
The Reserve Bank of India extended the board supersession of Mumbai-based Abhyudaya Co-operative Bank for an additional year from November 2026, preserving administrative control under the Banking Regulation Act to safeguard depositor interests.
Key points
- The Reserve Bank of India extended the supersession of the Board of Directors of Mumbai-based Abhyudaya Co-operative Bank Ltd. for another year, effective November 24, 2026.
- The regulatory extension was invoked under statutory powers conferred by sub-section (1) of Section 36AAA read with Section 56 of the Banking Regulation Act, 1949.
- The continuation of regulatory oversight beyond the close of business on November 23, 2026, was deemed necessary in the public interest following an institutional review.
- Mr. Satya Prakash Pathak will continue to discharge executive duties as the bank's Administrator throughout the extended tenure.
- A three-member Committee of Advisors comprising Mr. Venkatesh Hegde, Mr. Devendra Kumar, and Mr. Suhas Gokhale continues to assist the Administrator.
- The central bank did not impose any fresh restrictions on customer deposits or cash withdrawals, allowing regular banking operations to continue uninterrupted.
- The intervention has persisted despite the lender exhibiting early financial turnarounds, including improved profitability and improved asset quality.
- The action highlights sustained supervisory stringency over Urban Co-operative Banks experiencing material operational deficits.
Background
- On November 24, 2023, the RBI initially superseded the Board of Directors of Abhyudaya Co-operative Bank for a period of one year.
- The foundational intervention was triggered by material supervisory concerns arising from poor governance standards identified within the bank.
- In November 2024, following an internal assessment, the RBI implemented its first one-year extension of the board's supersession.
- In November 2025, the central bank renewed the administrative supersession for a second consecutive one-year period.
- On November 09, 2026, the central bank published an official circular ordering the third consecutive annual extension, taking effect November 24, 2026.
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Original report: The Hindu - Business/Economy