Udhna Citizens Cooperative Bank has finally got a new administrator in RR Padhyar. It is expected that Padhyar will be able to bring the fight between the management of the bank and Reserve Bank of India to an end.

The fight between the bank management and the regulator is based on the issue that RBI has put restrictions on the bank under Section 35 (A) of the Banking Act.

RBI recently obtained a stay order from Supreme Court in response to the stay order issued by Gujarat high court for a petition registered by the Cooperative bank against RBI for imposing restrictions in its operations as per Sec 35 (A) of Banking Act.

Padhyar commented, "Now my job will be to start the recovery. Under 35 (A) when restrictions are imposed on a bank, banking business can't take place and we have to recover the bank money still pending with firms or individuals."

The chairman of the bank, Setu Madhavan said, "I have nothing in my hand and our case in the high court against the RBI restrictions has also become redundant because the administrator will make things suitable for RBI and case will be dismissed in the next hearing."

The bank has 55,000 account holders and liquidity of Rs 34 crores but the NPA of the bank had crossed a risky level of more than 70 % thereby making the apex bank take the decision to impose restrictions on the bank.