When banks were falling like ninepins in the US, India too was not far behind with two Indian lenders going belly up.
As many 19 Indian co-operative banks collapsed for the 12 months ended March 2009 against 44 American entities failing during the same period.
Consequently, the Reserve Bank's credit insurance arm had to pay over Rs 142 crore to depositors to cover the liabilities of 19 banks.
Under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI, insurance norms, a maximum of Rs one lakh is paid to a depositor in case the bank goes insolvent.
From April 2008 till March 2009, a whopping 44 lenders in America were shut down by the authorities as the country continued to grapple with worsening financial meltdown.
Most of the bank failures happened after Lehman Brothers filed for bankruptcy on September 15 last year, with 35 entities going bust.
Meanwhile, this year, seven US banks are collapsing on an average every month, taking the total to 21 entities so far.
As far as India was concerned, the 19 co-operative banks, including six from Karnataka, have failed to repay deposits to customers during the last fiscal.
The DICGC paid the maximum amount of Rs 45.4 crore to District Cooperative Bank Ltd of Gonda in Uttar Pradesh. This was followed by The Maratha Co-operative Bank of Karnataka (Rs 17.7 crore), Parivartan Co-operative Bank of Maharashtra (Rs 16.7 crore), Ravi Co-operative Bank (Rs 16.2 crore) and Indira Priyadarshini Mahila Nagrik Sahakari Bank of Chhattishgarh (Rs 13.1 crore).
The other five lenders from Karnataka are Varda Co-operative Bank (Rs 2.4 crore), Harugeri Urban Co-operative Bank (Rs 3.1 crore), Kittur Rani Channamma Mahila Pattana Sahakari Bank (Rs 2.2 crore), Challakere Urban Co-operative Bank (Rs 3.2 crore) and Basavakalyan Pattana Sahakari Bank (Rs 0.24 crore).
Four banks each in Maharashtra and Gujarat went bankrupt, while two cases were reported in Uttar Pradesh.
During 2007-08, as many as 22 cooperative banks closed operations.