Saraswat Bank proposes to acquire fraud-hit New India Cooperative Bank, approaches RBI: Should NICB depositors worry?
Saraswat Bank, India’s largest urban cooperative bank, announced on Tuesday that it plans to unite the crisis -stroked new Indian Cooperative Bank (NICB) with him.
Saraswat Bank’s president Gautam Thakur, more than 1.22 Lakh deposits will not have any haircuts in Nicb Hitli Hitli Hitli and all savings will be maintained. PTI notified.
Deposit protection and access to funds
Currently, NICB deposit holders La25,000 per account due to the crisis.
After the merger was concluded, deposit holders said they could access the entire amount.
Thakur also said that the bank has no plan to turn into a commercial lender and is willing to continue to work as a cooperative bank.
However, when the regulation allowed, he said that the bank could consider being a universal bank.
Merger Timeline and Process
“We voluntarily approached the RBI to unite Saraswat with Nicb.” He said.
Saraswat Bank united the seven crisis strokes in the past and showed confidence that the merger with Nicb would pass.
After the shareholder shaking his head, both banks will go to the RBI for permission and the Central Bank will announce an effective date for the merger. In this process, NICB shareholders will be given a predetermined share in Saraswat Bank.
NICB’s financial status and return strategy
NICB is under a administrator who has been appointed by the RBI since February due to a alleged claim. La122 CRORE TEA MANAGEMENT WITH FUND EYE. As of March 2025, the bank kept La1,100 crore in assets, Thakur said PTI.
Emphasizing that every loan made by NICB is not an NPA, Thakur, Saraswat, where the size of the asset is exceeded La36,000 Crore will absorb the effect of the merger.
Thakur estimated that Nicb’s return would take about 18-24 months.
What will happen to NICB employees?
According to Thakur, the bank will absorb most of the remaining 200 NICB employees. However, employees associated with fraud will not be protected.
While Nicb has 27 branches in Mumbai, including 17, Saraswat Bank has 120 branches from the past branches in the past.
