CKP Bank 97% NPAs; Most in Real Estate
CKP Co-operative Bank, which bit the dust on May 2, has nearly 97 percent of Gross Non-Performing Assets (GNPAs), a lot of which are loans given to small and mid-sized real estate developers. Over the years, CKP Bank had built its business by lending to mostly small and mid-sized real estate developers in Mumbai, who did not pay back loans leading to a huge spike in NPAs. The deterioration in CKP's financials finally forced the Reserve Bank of India (RBI) to revoke the lender's licence after several warnings and on account of the bank's inability to come with a revival plan. In fact, the RBI had restricted CKP Bank from taking deposits and giving new loans way back in 2014 due to financial irregularities.
Tags : ALLIED Mumbai Real Estate Loans RBI Real Estate Developers CKP Bank financial irregularities Gross Non-Performing Assets