The Reserve Bank of India approved the voluntary amalgamation of Yadagiri Lakshmi Narasimha Swamy Cooperative Urban Bank with Telangana based Gayatri Cooperative Urban Bank last week.
Reacting on this development, Gayatri Cooperative Urban Cooperative Bank CEO Vanamala Srinivas said, “The merger will prove to be a ‘a win-win situation’ for both the banks and the interest of depositors associated with the Yadagiri Lakshmi Narasimha Swamy Cooperative Urban Bank will be protected. More than 8000 shareholders are connected with the Yadagiri Lakshmi UCB”.
“The bank has 6 branches and a business mix of Rs 170.74 crore. The branches of the Yadagiri Lakshmi Narasimha Swamy Co-operative Urban Bank has begun to function as branches of the Gayatri Co-operative Urban Bank Ltd., Jagtial (Telangana) with effect from June 10, 2024”, said Srinivas to this correspondent on the phone.
He added, “With this merger, our branch strength increased from 39 to 45 branches as on 10-06-2024. Further, we are aiming to achieve 60 branch networks by the end of this financial year 2024-25”, he said.
The Gayatri Co-operative Urban Bank has a business mix of more than Rs 2800 crore, he said adding “Our bank was established as the last Cooperative Bank in Combined Andhra Pradesh state in the year of 2000, Over these 24 years, we have been able to reach the 2nd largest position in business among Cooperative Banks in Telangana.
“We have an immense pleasure to inform you that we are aiming to reach the first position in Telangana by the end of this June quarter”, said the CEO.
He said, “ the bank strives to achieve its motto of having one Branch at each District of these two States and enticing the new generation of clientele with its Digital Thrust by inviting NRIs too, in the days to come”, he explained.
The CEO said, “We are also becoming a direct member of the Central Payment System shortly, we are expected to reach another milestone by becoming a Scheduled Bank, for which the approval from the Reserve Bank of India is awaited”, he informed.
It bears recalling that earlier, the bank had mergers with two more banks i.e. Samatha Mahila Co-Operative Urban Bank and Bhimavaram Co-Op Urban Bank.
Issuing a press release in this regard the RBI said, “The Reserve Bank of India has sanctioned the Scheme of Amalgamation of The Yadagiri Lakshmi Narasimha Swamy Co-operative Urban Bank Ltd., Yadadri Bhuvanagiri, Telangana with The Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana”, the release said.
“The Scheme has been sanctioned in exercise of the powers conferred under Sub-Section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949. The Scheme will come into force with effect from June 10, 2024”, it further reads.
