Saraswat Coop Bank proposes to acquire New India Coop Bank

Country’s largest cooperative bank Saraswat Cooperative Bank has sought Reserve Bank of India approval to acquire New India Cooperative Bank Ltd, a senior management official stated on Tuesday. If RBI approves the merger, Saraswat will acquire entire liabilities and assets – bringing relief to thousands of depositors who are unable to access their entire savings after RBI imposed a moratorium on New India from February 13.

Gautam Thakur, chairman of Saraswat Cooperative Bank, told the media that the interest component of depositors will be fully protected. At present, each New India depositor can withdraw upto Rs 25000.

New India Cooperative has Rs 2397.8 crore deposits and Rs 1162 crore as advances.

“We are confident that the RBI will not turn down the proposal. In the past Saraswat has acquired seven cooperative banks. Businesses of these banks rose from Rs 1900 crore to Rs 9200 crore post-acquisition,” Thakur said. He said there is a synergy between the two banks and the key driver being that geographical presence.

Although the management declined to share the cost of acquisition, Thakur said, it will be a ‘fraction of their capital.’

At present, the bank’s net non-performing asset is nil but post the proposed acquisition it could rise marginally. The bank has posted a net profit of Rs 518 crore for FY25.