Saraswat Co-operative Bank to Acquire Fraud-Hit New India Co-operative Bank in Major Sector Merger
Saraswat Co-operative Bank to Acquire Fraud-Hit New India Co-operative Bank in Major Sector Merger
RBI gives in-principle nod; merger expected by August-September to safeguard depositors after Rs.122 crore scam
In a significant development for India’s co-operative banking sector, Saraswat Co-operative Bank Ltd (SCBL) has announced the acquisition of the fraud-hit New India Co-operative Bank Ltd (NICBL). The move follows strict restrictions imposed by the Reserve Bank of India (RBI) in February after a ₹122 crore scam involving NICBL’s senior management came to light.
Saraswat Bank, India’s largest urban co-operative bank, has voluntarily proposed the merger to rescue depositors who were unable to access their funds since the RBI appointed an administrator at NICBL. The RBI has granted in-principle approval for the amalgamation, which now awaits final approval from the shareholders of both banks.
Saraswat Bank Chairman Gautam E. Thakur confirmed that all assets and liabilities of NICBL will be taken over by SCBL, and the interests of depositors will be fully protected. He added that the merger is expected to be completed between August and September 2025, and it may take up to two years to fully stabilize the fraud-hit institution.
Thakur emphasized that due diligence and a special audit are underway. The bank is also working closely with the Economic Offences Wing (EOW) and other enforcement agencies to ensure accountability and transparency in the process.
This acquisition marks the eighth such merger by Saraswat Bank, which has previously absorbed more than seven financially weak co-operative banks, collectively rescuing over 800,000 depositors. “We’ve helped troubled depositors without any haircut,” Thakur said, reaffirming the bank’s commitment to safeguarding public trust.
Post-merger, Saraswat Bank will expand with 40–45 new branches, including 27 existing NICBL branches. The bank also plans to enter new markets such as Rajasthan and other states, aligning with its long-term growth strategy.
Despite its expanding footprint, Saraswat Bank has made it clear that it has no plans to transition into a universal bank, instead choosing to remain a leading player within the urban co-operative sector. As of March 31, 2025, the bank reported:
- Deposits of ₹55,481 crore
- Advances of ₹36,333 crore
- Net profit of ₹518.25 crore
- Gross NPAs at 2.25% and net NPAs at zero for the third consecutive year
The business of previously acquired weak banks has also seen dramatic improvement, growing from ₹1,900 crore to ₹9,200 crore in five years illustrating Saraswat Bank’s proven track record in revival and integration.
