Latest news with #GautamThakur
Time of India
01-07-2025
- Business
- Time of India
Saraswat Co-op Bank unveils merger plan with New India
Mumbai: Saraswat Cooperative Bank has announced a voluntary merger with the troubled New India Co-operative Bank, aiming to protect over two lakh depositors and strengthen its position as India's largest urban cooperative bank. The proposal, disclosed by chairman Gautam Thakur at a conference jointly with New India's RBI -appointed administrator Shreekant, comes under the RBI's master directions for voluntary amalgamations. New India was placed under restrictions by the RBI in Feb following mismanagement and fraud. Thakur said there is no other suitor and that Saraswat's due diligence found the proposal viable. "Depositors will face no haircut. This is our eighth such revival and in none have depositors lost money," he said. Shareholder approval from both banks is now awaited. A draft scheme of amalgamation has been circulated and shareholder meetings have been notified. "Once approvals are in, we expect the RBI to clear it quickly as there are no other suitors. The merger should be completed by August or September," Thakur said. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai This acquisition continues Saraswat's tradition of reviving co-operative banks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo Over the past two decades, it has absorbed seven failed institutions, reviving Rs 1,900 crore in assets that grew to Rs 9,200 crore in five years. New India has 27 branches, including 17 in Mumbai, with Rs 2,240 crore in deposits and Rs 1,100 crore in advances. While New India remains under investigation by the Economic Offences Wing, Thakur clarified the legal proceedings are separate from the merger. "No employee or board member involved in wrongdoing will be taken on," he said. Thakur said Saraswat is well positioned to absorb the bank. "We have Rs 36,000 crore in advances. The potential loss from New India's portfolio is manageable. We even created a Rs 125 crore floating provision last year," he said. With a capital adequacy of 17.43% and a 106-year legacy, Saraswat operates 312 branches across eight states and plans to add 30–50 more this year. Asked about the benefit to Saraswat, Thakur called it both a strategic and community-driven move. "New India's customer base in Mumbai strengthens our core market," he said. Saraswat's business stood at Rs 91,800 crore in March 2025, with 17.99% deposit growth. "We expect to cross Rs 1 lakh crore this year." Thakur reaffirmed Saraswat's commitment to remaining a co-operative, albeit a giant on the lines of Amul. He said that the cooperative structure was in place across the world in the form of credit unions in the US or co-op banks in Europe. Meanwhile, depositors of New India Co-operative Bank (NICB) have spent the past four months scraping by under stringent withdrawal limits, and nowhere is the strain more evident than in Vasant Vihar retiree Krishnan Iyer's story. "All my post-retirement benefits were locked up in the bank. My daughter's getting married next year and there's very little I can do," he explains. Since April, the RBImandated cap of Rs 25,000 per withdrawal has forced Iyer and his family to stretch every rupee. "How can families be expected to survive like that? We still don't know whether we'll get our money back," he laments, adding that he's now wary of all co-operative banks, despite a long history of good experiences at NICB's well-appreciated branches. With Saraswat Co-operative Bank set to take over, Iyer hopes for more generous interest rates and the polite, helpful service he remembers from 15 years ago. "I've heard good things about Saraswat, but I was getting 7.5–8% on FDs at NICB, which matters a lot at my age. Still, we're relieved and happy that Saraswat is stepping in." (Inputs by Mrinalini Singh) Get the latest lifestyle updates on Times of India, along with Doctor's Day 2025 , messages and quotes!
Economic Times
01-07-2025
- Business
- Economic Times
Saraswat Coop Bank proposes to acquire New India Coop Bank
Saraswat Cooperative Bank seeks RBI approval to acquire New India Cooperative Bank, offering relief to depositors facing restricted access to their savings since February. The acquisition aims to protect depositors' interests fully, with Saraswat Bank Chairman Gautam Thakur highlighting the synergy between the two banks. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Country's largest cooperative bank Saraswat Cooperative Bank has sought Reserve Bank of India approval to acquire New India Cooperative Bank Ltd, a senior management official stated on Tuesday. If RBI approves the merger, Saraswat will acquire entire liabilities and assets - bringing relief to thousands of depositors who are unable to access their entire savings after RBI imposed a moratorium on New India from February Thakur, chairman of Saraswat Cooperative Bank, told the media that the interest component of depositors will be fully protected. At present, each New India depositor can withdraw upto Rs India Cooperative has Rs 2397.8 crore deposits and Rs 1162 crore as advances.'We are confident that the RBI will not turn down the proposal. In the past Saraswat has acquired seven cooperative banks. Businesses of these banks rose from Rs 1900 crore to Rs 9200 crore post-acquisition,' Thakur said. He said there is a synergy between the two banks and the key driver being that geographical the management declined to share the cost of acquisition, Thakur said, it will be a 'fraction of their capital.'At present, the bank's net non-performing asset is nil but post the proposed acquisition it could rise marginally. The bank has posted a net profit of Rs 518 crore for FY25.
Mint
01-07-2025
- Business
- Mint
Saraswat Bank proposes to acquire fraud-hit New India Cooperative Bank, approaches RBI: Should NICB depositors worry?
Saraswat Bank, India's largest urban cooperative bank, has announced on Tuesday that it plans to merge the crisis-hit New India Cooperative Bank (NICB) with itself. Saraswat Bank's chairman Gautam Thakur has assured that there will not be any haircut for any of the over 1.22 lakh depositors of fraud-hit NICB, and all the savings will be protected, PTI reported. Depositor protection and access to funds Currently, the NICB depositors face withdrawal limits of ₹25,000 per account due to the crisis. Once the merger is finalised, depositors will be able to access the full amount, Thakur said, adding that he expects the merger to complete by end-September. Thakur also said the bank has no immediate plans to convert into a commercial lender, and is keen to continue working as a cooperative bank. However, he indicated that the bank might consider becoming a universal bank whenever the statutes permit, he said. Merger timeline and process "We have voluntarily approached the RBI for the merger of Saraswat with NICB," Thakur said. Saraswat Bank has merged seven crisis-hit banks with itself in the past and showed confidence that the merger with NICB will also go through. Also Read | Credit score can affect your job prospects: SBI case highlights key lessons After the shareholder nod, both banks will go to the RBI for clearance, and the central bank will announce an effective date for the merger. In this process, the shareholders of NICB will be given shares in Saraswat Bank in a predetermined ratio. NICB's financial status and turnaround strategy NICB has been under an RBI-appointed administrator since February due to an alleged ₹122 crore embezzlement of funds by top management. As of March 2025, the bank held over ₹1,100 crore in assets, Thakur told PTI. Stressing that not every loan made by NICB is an NPA, Thakur is confident that Saraswat, with an asset size exceeding ₹36,000 crore, will absorb the impact of the merger. Also Read | Asian Banks Fuel More Than $2 Billion Loan Boom in Middle East Thakur estimated that it will take around 18-24 months to turn around NICB. What will happen to NICB employees? According to Thakur, the bank will absorb as many of the 200 remaining NICB employees after evaluating them. However, any employees associated with the fraud will not be retained. NICB has 27 branches, including 17 in Mumbai, whereas Saraswat Bank has 120 branches in the city, including 30 which have come from banks merged in the past, the news agency reported.
