Despite opposition from urban cooperative banking fraternity, the New India Co-operative Bank (NICB) on Monday said its shareholders have decided to convert it into a small finance bank.
Unhappy with Mumbai-based New India Co-operative Bank’s proposed move to convert into a Small Finance Bank (SFB), the Maharashtra Urban Co-operative Banks’ Federation had earlier held a ‘haath jodo andolan’ (protesting with folded hands) at the bank’s special general body meeting on January 18 to appeal to its members to vote against the resolution on conversion.
It bears recall that earlier this month yet another UCB followed suit when RBI granted “in-principle” approval to Shivalik Mercantile Co-operative Bank Limited (the applicant) for transition into a Small Finance Bank (SFB) under the “Scheme of voluntary transition of Urban Co-operative Bank into a Small Finance Bank” (the Scheme) issued on September 27, 2018.