Depositors should feel secure and restart transactions: Kale on merger

Explaining in detail about the voluntary merger of Maratha Sahakari Bank into Cosmos Bank, Cosmos Bank Chairman CA Kale informed that the deposits of Rs. 84 Crore belonging to depositors have gained security and the Bank has taken responsibility for Rs. 112 Crore which is paid by DICGC to depositors having deposits under Rs. 5 Lakh.

Calling it a trend-setting example in the cooperative banking sector, Kale said “The most important thing is that even though the Bank has a negative net worth, all deposits of investors are secured. The Bank has absorbed all the staff of erstwhile Maratha Sahakari Bank.”

The Cosmos Bank held a Press Conference on this occasion where the Bank’s Director – CA Jayant Barve, Mr. Sachin Apte, Vice Chairman – Mr. Praveenkumar Gandhi, Chairman – CA Milind Kale & Managing Director – Mrs. Apekshita Thipsay were present.

Kale further informed that with the voluntary merger of Maratha Sahakari Bank, the Cosmos Bank has merged 17 small banks up till now. Lakhs of depositors’ deposits have been secured. The Bank’s financial foundation is very strong having a total business of Rs. 30,700 Crore at the end of March 2023. The Bank has earned a net profit of Rs. 151 Crore.

The Bank’s Share Capital and Own Funds are more than Rs. 2000 Crore. Due to competition, it has become difficult for small banks to sustain. In this scenario, the Cosmos Bank has helped many banks in order to uphold the ethos of the cooperative sector.

With this merger the Cosmos Bank now has 40 branches in Mumbai while it has 159 branches in 7 states across India. CA Kale appealed to the account holders of erstwhile Maratha Sahakari Bank to restart banking operations of all their accounts.

A small function was arranged at the erstwhile Maratha Sahakari Bank’s Mumbai Head Office located in Andheri East. All the Directors of the former Maratha Sahakari Bank, the Cosmos Bank’s Vice Chairman- Mr. Praveenkumar Gandhi, all Directors and Managing Director, Mrs. Apekshita Thipsay were present on this occasion.

It bears recalling that with the permission of Reserve Bank, all seven Mumbai branches of Maratha Sahakari Bank are operational for service as branches of The Cosmos Cooperative Bank Ltd., from today. The customers will now receive all the latest facilities and services of Cosmos Bank, stated Bank’s Chairman, CA Milind Kale.

Kale informed that as per the new guidelines of the Reserve Bank under 35 AI-D, this is merger of the first bank which was under restrictions imposed by RBI amongst many other banks.

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