In a significant development in the cooperative banking sector, the Reserve Bank of India (RBI) has approved the voluntary amalgamation of New India Co-operative Bank Ltd., Mumbai, with Saraswat Co-operative Bank Ltd., Mumbai.
Invoking its powers under sub-section (4) of Section 44A, read with Section 56 of the Banking Regulation Act, 1949, the RBI has officially sanctioned the Scheme of Amalgamation, which will come into effect from Monday, August 4, 2025.
As per the scheme, all branches of New India Co-operative Bank will function as branches of Saraswat Co-operative Bank from the effective date. The move is expected to enhance operational efficiency and customer service, while also strengthening the cooperative banking network in Maharashtra.
The merger marks yet another step in the ongoing consolidation within the urban cooperative banking sector, aimed at ensuring financial stability and resilience.
Saraswat Co-operative Bank Ltd., 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, the Bank had, as of March 31, 2025, a network of 312 branches and 303 ATMs across eight states: Maharashtra, Goa, Gujarat, Karnataka, Madhya Pradesh, Delhi, Haryana, and Uttar Pradesh.
It reported a Total Business of Rs 91,814 crore, comprising Rs 55,481 crore in deposits and Rs 36,333 crore in advances, along with a Net Profit of Rs 518.25 crore. The Bank continues to maintain excellent asset quality, with Gross NPAs at 2.25% and Net NPAs at zero for the third consecutive year. Its Capital to Risk-weighted Assets Ratio (CRAR) stands at 17.43%.
New India Co-operative Bank Ltd., as of March 31, 2025, reported deposits of Rs 2,397.85 crore and advances of Rs 1,162.67 crore, resulting in a total business volume of Rs 3,560.52 crore. The Bank, however, recorded a negative net worth of Rs 102.74 crore for FY 2024–25 as per audited accounts. NICBL operates 27 branches, 17 in Mumbai, 6 in Thane and Palghar, 2 in Surat, and one each in Pune and Navi Mumbai.
Saraswat Bank has a strong track record of successfully taking over and reviving financially weak co-operative banks. Over the years, it has acquired institutions such as Maratha Mandir Co-operative Bank, Mandvi Co-operative Bank, Annasaheb Karale Janata Sahakari Bank Ltd., Murgharajendra Sahakari Bank Ltd., Nashik Peoples Co-operative Bank Ltd., South Indian Co-operative Bank Ltd., and Kolhapur Maratha Sahakari Bank Ltd.
Through these takeovers, it has safeguarded the interests of more than eight lakh depositors and scaled the combined business of the acquired banks from Rs 1,900 crore at the time of takeover to Rs 9,200 crore within five years.
