Reserve Bank of India has directed special audit to be carried out against three Surat based Co-operative banks. The audit of these banks is being carried out since past one week.

The reason of these banks coming under RBI scanner is that they have been charged of granting credit which is far more than the amount stipulated to them.

The matter has been confirmed by the District Co-operative Department too. Sources have revealed that these banks are functioning since quite some time in the region and hold a reputation of their own.

Over disbursement of credit has led to liquidity crunch occuring in these banks.

'' Till March 31, 2009, total Non Performing Assets (NPA) of the bank accounted to 49 per cent, while 84.7 per cent CD ratio declared by bank is also wrong and misleading. Bank has given loans of more than 70 per cent of its total assets, which is again breach of RBI rules. As per our investigation, bank has credited 85 to 90 per cent of its total assets as loans,'' Kamlesh Patel, Registrar, district co-operative department (Surat), said.