Mumbai, Feb. 14 -- In a significant regulatory intervention, the Reserve Bank of India (RBI) has imposed stringent restrictions on New India Co-operative Bank, a Mumbai-based lender, effectively freezing its core banking operations for the next six months.

The central bank's directive, issued Thursday, bars the institution from extending new loans and accepting deposits, citing critical supervisory concerns and liquidity issues.

The troubled bank has been experiencing substantial financial strain, with losses mounting to 227.8 million rupees in fiscal year 2024, following a deeper loss of 307.5 million rupees in the previous year.

The bank's loan portfolio has contracted significantly, shrinking to 11.75 billion rupees by March 2024fro...