The Reserve Bank of India (RBI) has extended the supersession of Abhyudaya Co-operative Bank's board for another year, effective November 24, 2026. According to reports from The Hindu BusinessLine, the extension was announced on Monday and cited public interest as the primary reason for the continuation of the supersession period. The latest decision marks the third consecutive annual extension since the board was first superseded in November 2023. As per The Hindu BusinessLine, the RBI stated that upon review, it is satisfied that in the public interest, it is necessary to further extend the period of supersession beyond the close of business on November 23, 2027. The central bank's decision follows concerns over governance standards that prompted it to take control of the Mumbai-based lender in November 2023.
The RBI had originally superseded the bank's board on November 24, 2023, for one year due to material concerns arising from poor governance standards. As reported by The Hindu BusinessLine, the supersession was subsequently extended by one year each in November 2024 and November 2025. Following a comprehensive review, the central bank determined that it was necessary to extend the period of supersession beyond the close of business on November 23, 2027. The RBI has exercised its powers under Section 36AAA, read with Section 56, of the Banking Regulation Act, 1949 to extend the supersession period. The supersession was initially implemented due to material concerns regarding the bank's operations that raised governance standards.
With the latest extension, Satya Prakash Pathak will continue as the administrator of the Mumbai-based bank for another year until November 23, 2027. According to The Hindu BusinessLine, he will be assisted by the existing Committee of Advisors comprising Venkatesh Hegde, Devendra Kumar and Suhas Gokhale. This structure has been in place since the initial supersession and will continue during the extended period. As reported by The Hindu BusinessLine, Pathak was appointed as Administrator after the board supersession in November 2023, having previously served as former Chief General Manager of State Bank of India. When it first superseded the board in November 2023, the RBI had clarified that it had not imposed any restrictions on the bank's business, allowing Abhyudaya Co-operative Bank to continue its normal banking operations under the Administrator's supervision.
