Janata Sahakari Bank Ltd. (JSBL), Pune, has approved the proposed merger of Udyam Vikas Sahakari Bank Ltd. with itself, marking a significant consolidation move in Maharashtra’s cooperative banking sector.
The decision was taken at the bank’s 77th Annual General Meeting held at Lokshahir Annabhau Sathe Memorial Hall, Satara Road, Pune. The AGM, chaired by Chairman Ravindra Hejib, approved the merger proposal and other resolutions by majority.
Udyam Vikas Sahakari Bank, headquartered in Pune and operating through eight branches, had proposed the merger citing rising competition, rapidly increasing technology costs and limited resources. Janata Bank appointed M/s Medadkar & Co. to conduct due diligence, and the report was found favourable. The merger will now proceed subject to regulatory and Reserve Bank of India approvals.
Meanwhile, Janata Sahakari Bank recorded healthy business growth during FY2025-26. Deposits rose to Rs 10,811.40 crore, while loans and advances increased to Rs 6,711.17 crore, taking total business to Rs 17,522.57 crore. Net worth strengthened to Rs 556.52 crore, and the bank declared a 3% dividend for members.
The bank, however, reported a net profit of Rs 17.33 crore, down from Rs 67.98 crore in FY2024-25. The management attributed the decline largely to an Rs 39.85 crore provision towards Investment Depreciation Reserve (IDR) amid geopolitical developments, along with a Rs 31.48 crore deferred tax impact following adoption of the new tax regime. Together, these factors had an accounting impact of Rs 71.33 crore.
The bank’s CRAR improved to 15.07%, while its credit-deposit ratio rose to 62.07%. Gross NPA stood at 4.08% and net NPA at 2.09%.
The AGM also announced that upgraded TCS Core Banking and Internet Banking services will be rolled out in the coming months, with the bank placing special emphasis on industrial lending. A special session on cybersecurity, KYC, ReKYC and CKYC was also conducted.
CEO Jagdish Kashyap addressed members’ queries, while Director Padmaja Kulkarni proposed the vote of thanks. The meeting concluded with the national anthem.
