Saraswat Bank completes New India Bank merger; account access begins Monday
Tired of too many ads? go ad free now
Following the merger, Saraswat Bank will assume all assets and liabilities of New India Bank. "Customers, including depositors of NICBL, will be treated as customers of Saraswat Bank with effect from 4th August, 2025, and their interests will be fully protected," Saraswat Bank said.
The move follows approvals by shareholders of both banks. Saraswat Bank passed the scheme at its special general meeting held on Jul 22, while NICB members cleared it in their annual general meeting.
The proposal was then sent to RBI, which sanctioned the amalgamation under Section 44A (4) of the Banking Regulation Act, 1949.
"RBI has sanctioned the Scheme of Amalgamation of NICB with Saraswat Co-operative Bank. The Scheme will come into force with effect from August 04, 2025 (Monday). All the branches of New India Co-operative Bank Ltd, Mumbai will function as branches of Saraswat Co-operative Bank with effect from August 04, 2025," RBI said.
NICB was placed under RBI moratorium on Feb 13, 2025, following losses, poor governance, and a Rs 122 crore embezzlement by senior officials. A police complaint and arrests followed. RBI's surprise inspection found serious compliance failures. All withdrawals were frozen, lending and deposit-taking were banned, and the board was replaced by an administrator. RBI said the action was necessary to protect depositors and stabilise the bank while exploring revival or merger options.
Tired of too many ads? go ad free now
Saraswat Bank is nearly 25 times larger than the erstwhile NICB. Saraswat reported a total business volume of Rs 91,814 crore, with deposits of Rs 55,481 crore and advances of Rs 36,333 crore. NICB had a total business of Rs 3,560 crore, including deposits of around Rs 2,250-2,398 crore and advances of about Rs 1,100–1,162 crore. Saraswat Bank chairman Gautam Thakur had said that with a capital adequacy of over 17%, Saraswat was well placed to absorb NICB.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
11 minutes ago
- Economic Times
Paytm shares in focus as Antfin plans 5.4% equity stake sale via block deal
Shares of One 97 Communications (Paytm) will be in focus on Tuesday, August 5, as Antfin (Netherlands) Holding B.V. plans to sell 5.4% of its stake in the company through a block deal on Indian stock exchanges. ADVERTISEMENT According to the term sheet, the transaction is valued at Rs 3,803.3 crore (approximately USD 434 million) at the offer floor price. The offer floor price has been set at Rs 1,020 per share, representing a 5.4% discount to Paytm's closing price of Rs 1,078.20 on the National Stock Exchange (NSE) as of August 4. The sale involves up to 3.7 million shares, accounting for 5.84% of the company's total outstanding proposed sale will be executed as a bulk sale via one or more share sales on the screen-based trading platform of Indian stock exchanges. The entire offering is secondary in nature, implying that the company will not receive any proceeds from the deal is being managed by Citigroup Global Markets India and Goldman Sachs (India) Securities, who are acting as the placement agents for the transaction. ADVERTISEMENT Books Open: Around 7:00 AM IST on August 5, with the option to close earlier. Around 7:00 AM IST on August 5, with the option to close earlier. Expected Trade Date: August 5, 2025 (T) August 5, 2025 (T) Expected Settlement Date: August 6, 2025 (T+1) August 6, 2025 (T+1) Lock -up: Not applicable; classified as a clean-up trade Not applicable; classified as a clean-up trade Brokerage & Charges: Buyer to bear 25 basis points, with additional market charges as applicable Buyer to bear 25 basis points, with additional market charges as applicable USD/INR Reference Rate: 87.6525 (Bloomberg rate as of August 4, 2025, 4:00 PM IST) According to the term sheet, no official pricing guidance will be provided until the shares are crossed on the exchanges on August 5. ADVERTISEMENT On Monday, the shares of Paytm closed flat at Rs 1,078.30 on the BSE. Also read: Tata Investment announces first-ever stock split in 1:10 ratio; check details on record date (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
11 minutes ago
- Economic Times
Laxmi India Finance IPO set for debut today. Check GMP ahead of listing
Laxmi India Finance, a Jaipur-based NBFC specializing in MSME and vehicle loans, is set to debut on the stock market on Tuesday. The IPO, priced at Rs 158, saw a subscription of 1.86 times, with strong retail participation. While analysts view the stock as fairly valued, its regional focus and leverage warrant consideration. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Jaipur-based non-banking finance company Laxmi India Finance is set to make its stock market debut on Tuesday with the issue commanding a modest 2% grey market premium (GMP) over its IPO price of Rs Rs 254.26-crore IPO, comprising a fresh issue and an offer for sale, closed with a healthy 1.86 times overall subscription, with strong retail participation at 2.20 in 1996, Laxmi India Finance is a regional NBFC with a stronghold in Rajasthan and presence across Gujarat, Madhya Pradesh, and Chhattisgarh. It focuses on priority-sector lending to MSMEs and vehicle loan customers. As of March 2025, its AUM stood at Rs 1,277 crore, with MSME lending making up over 76% of the IPO was priced at Rs 158 per share, valuing the company at Rs 826 crore market cap post-issue. It reported a net profit of Rs 36 crore on revenues of Rs 248 crore in FY25, reflecting YoY growth of 60% and 42%, view the stock as fairly valued, though opinions are divided due to its regional focus, high leverage, and moderate asset quality indicators. Still, its efficient hub-and-spoke model, tech-enabled sourcing, and high first-time borrower base support its long-term lending stock will list on both NSE and BSE on August 5, and early trade will reveal whether the slight GMP translates into listing-day gains or if the counter sees muted action.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
11 minutes ago
- Economic Times
Nimbus Group to invest Rs 1,000 cr on new housing project in Noida
Realty firm Nimbus Group will invest around Rs 1,000 crore to develop a luxury housing project in Noida. ADVERTISEMENT The company will develop 342 apartments in the project 'Arista Luxe' at Sector 168, Noida. "We will develop a luxury housing project in Noida. The total investment will be around Rs 1,000 crore," Nimbus Group promoter Bipin Agarwal told reporters here. He said the company has become a co-developer in a 10-acre stalled housing project, which was originally launched by Sunworld Residency Pvt Ltd in the first phase, spread over 6 acres of land, around 600 units have already been delivered to customers."Now, we are developing four towers in about 4 4-acre land parcel," Agarwal said. ADVERTISEMENT Out of the total investment, he said, around Rs 500 crore will be for company would also clear the dues of the Noida Development Authority. It would also pay some amount to Sunworld towards the land cost. ADVERTISEMENT Agarwal said the co-developer policy introduced by the authority will help in the completion of many stalled housing Group will sell these 342 apartments in a price range of Rs 4-8 crore. The company has launched this project at Rs 16,000-18,000 per sq ft, he added. ADVERTISEMENT "The demand is steady in Noida and Greater Noida, and we will sell these apartments slowly to end-users," he said. Nimbus Group has developed many housing projects in Noida, comprising around 8,000 homes. It is currently constructing a few more projects in Noida and Greater Noida (You can now subscribe to our ETMarkets WhatsApp channel)
