Consequently, the Reserve Bank has appointed Satya Prakash Pathak, former Chief General Manager of State Bank of India, as the Administrator to manage the affairs of the bank during this period.

The RBI has also appointed a Committee of Advisors to assist the Administrator to discharge his duties. The members of the committee are Venkatesh Hegde (former General Manager, SBI); Mahendra Chhajed (Chartered Accountant); and Suhas Gokhale (former MD, COSMOS Co-operative Bank Limited).

“The above action is necessitated due to certain material concerns emanating from poor governance standards observed in the bank. No business restrictions have been placed by RBI and the bank shall continue to carry on its normal banking activities as is hitherto, under the guidance of the Administrator," RBI said.