The Reserve Bank of India approved the voluntary amalgamation of Twin Cities Co-operative Urban Bank Ltd., Hyderabad with Telangana based Kranti Co-operative Urban Bank Ltd recently.
Reacting to this development, Kranti Cooperative Urban Bank CEO S Somasekhar said, “We are happy that the RBI has given its nod for the merger of the ailing UCB i.e. Twin Cities Co-operative Urban Bank with our bank. Without any delay, on 23rd August 2023, we took over its activities for a smooth running of the bank”.
“The Twin Cities Co-operative Urban Bank is a unit bank having a single branch at Hyderabad city. The merger will benefit many people associated with the bank. The bank’s loss is around Rs 90 lakh”, said Somasekhar to this correspondent on the phone.
He further added that the bank had applied for the merger a 1.5 year ago and now the RBI approved the voluntary amalgamation. “The Kranti Co-operative Urban Bank has a branch network of 5 branches but with the merger of Twin Cities Co-operative Urban Bank, it has come to six”, said Somasekhar.
Besides, the Kranti Cooperative Urban Bank has a business of more than Rs 75 crore and earned a net profit of Rs 72 lakh in the 2022-23 financial year.
In its press release the RBI said, “The Reserve Bank of India has sanctioned the Scheme of Amalgamation of Twin Cities Co-operative Urban Bank Ltd., Hyderabad, Telangana with Kranti Co-operative Urban Bank Ltd., Hyderabad, Telangana.”
“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″, read the release.
“The Scheme will come into force with effect from August 23, 2023. The branch of Twin Cities Co-operative Urban Bank Ltd., Hyderabad (Telangana) will function as a branch of Kranti Co-operative Urban Bank Ltd., Hyderabad (Telangana) with effect from August 23, 2023”, the release further added.