Saraswat Bank Proposes Voluntary Merger With Beleaguered New India Cooperative Bank
Mumbai: In a significant development, India’s largest urban co-operative bank, Saraswat Co-operative Bank Ltd (SCBL) on Tuesday announced its voluntary proposal to merge the beleaguered New India Cooperative Bank with itself.
About The Decision
The bank said that it has approached the Reserve Bank (RBI) voluntarily for the amalgamation of New India Co-operative Bank Ltd. (NICBL) with Saraswat Co-operative Bank Ltd. (SCBL), subject to approval of shareholders of both banks. SCBL will be taking over all the assets and liabilities of NICBL, post-merger. Interests of the Depositors will be protected fully.
Saraswat Bank, with a legacy of over a hundred years, is the largest Urban Co-operative Bank in India, built on the pillars of trust, integrity, and service. With 312 branches and 303 ATMs, and presence in 8 states viz. Maharashtra, Goa, Gujarat, Karnataka, Madhya Pradesh, Delhi, Haryana, and Uttar Pradesh, have a Total Business of Rs 91,814 crore as on March 31, 2025 (deposits of Rs 55,481 crore and advances of Rs 36,333 crore) and net profit of Rs 518.25 crore.
The bank maintained an impressive asset quality with gross NPAs at 2.25% and Net NPAs at ZERO for the third consecutive year–a remarkable feat in the Urban Co-operative Banking space. The CRAR of the bank is 17.43%. As of March 31, 2025, NICBL reported Deposits of Rs 2,397.85 crore and Advances of Rs 1,162.67 crore with a Total Business of Rs 3,560.52 crore. NICBL recorded a negative net worth of Rs. 102.74 crore for FY 2024-25 (as per audited final accounts for FY 2024-25).
It operates 27 branches-17 in Mumbai, six in Thane & Palghar, two in Surat, and one each in Pune and Navi Mumbai. Saraswat Bank has a long tradition of taking over financially weak co-operative banks. It has acquired Maratha Mandir Co-operative Bank, Mandvi Co-operative Bank, Annasaheb Karale Janata Sahakari Bank, Murgharajendra Sahakari Bank, Nashik Peoples Co-operative Bank, South Indian Cooperative Bank, and Kolhapur Maratha Sahakari Bank in the past.
Helping over eight lakh depositors of these weak institutions, Saraswat Bank had swiftly turned around these troubled banks. After the takeover by Saraswat Bank, the business of all these seven weak banks put together had gone up from Rs 1,900 crore at takeover to Rs 9,200 crore in a span of five years. Demonstrating its firm commitment towards the Co-operative sector and helping the stranded depositors of NICBL, Saraswat Bank is upholding the principles of Co-operation and looks forward to welcoming the depositors of NICBL into its fold.
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