The 68th Annual General Meeting (AGM) of Nashik Merchants Co-operative Bank (Namco Bank) has approved the proposed voluntary amalgamation of Motiram Agrawal Jalna Merchants Co-operative Bank Ltd., Jalna, marking a significant step towards the consolidation of the financially stressed cooperative bank with Namco Bank.
The AGM also approved the draft agreement for the proposed amalgamation. The merger will, however, require approval from the Reserve Bank of India (RBI) and other statutory authorities before it can take effect.
Speaking to Indian Cooperative, Namco Bank Chairman Hemant Dhatrak said the Jalna-based bank has deposits of around Rs 165 crore and advances of approximately Rs 135-140 crore. Of its deposits, nearly Rs 95 crore represents deposits of up to Rs 5 lakh, which are covered under deposit insurance and have been repaid to eligible depositors.
Jalna Merchants Co-operative Bank has been facing financial stress and was placed under regulatory directions by the RBI in April 2026. Dhatrak said the bank had also suffered a fraud of around Rs 52 crore involving warehouse receipts, further impacting its financial position.
According to Dhatrak, Namco Bank undertook detailed due diligence before seeking members’ approval. The exercise covered the financial and operational position of the bank, including its network of 11 branches, one of which operates from its own premises.
The next step will be preparation of the detailed scheme of amalgamation following the AGM approval. Dhatrak said the scheme and related documents are expected to be submitted to the RBI within around 15 days, after which the proposal will undergo the prescribed regulatory process.
The proposed merger comes at a time when Namco Bank itself remains financially sound. During FY2025-26, its total business increased by Rs 587.12 crore to Rs 4,348.42 crore. Deposits stood at Rs 2,721.07 crore and advances at Rs 1,627.36 crore.
The bank reported a net profit of Rs 43.33 crore, while Gross NPA declined to 2.87% and Net NPA stood at zero. Its Capital Adequacy Ratio was 28.61%.
For FY2026-27, Namco Bank has set a total business target of Rs 5,100 crore, along with plans to open five new branches, relocate 10 and renovate another 10. It is also expanding digital banking services, including mobile banking, online account opening and loan applications, and plans to introduce its own UPI handle.
