Saraswat Co-op Bank to acquire two co-op banks
Saraswat Cooperative Bank, country's largest co-operative bank has presence in 5 states Maharashtra, Goa, Gujarat, Madhya Pradesh and Karnataka. It will soon acquire two Sangli-based co-operative banks.
1) Maharashtra State Annasaheb Karale Janata Sahakari Bank Ltd. (AKJSB)
2) Murgharajendra Sahakari Bank Ltd. (MRSB)
a) Shareholders of the both the acquired banks will not receive any shares after merger since both acquired banks are loss making.
b) The board of directors has resolved to acquire only those banks with losses of around Rs 50 crore.
c) Post merger, Saraswat Bank will have 127 branches, a deposit base of Rs 9,039 crore and advances of Rs 6,493 crore
Earlier the bank had acquired Mandvi Cooperative Bank and Maratha Mandir Co-operative Bank. The Bank is excepted to merge another seven cooperative banks by the end of the financial year 2008 bank to reach a member base of one lakh.
The names of these cooperative banks are yet to be disclosed.
The Trend of Acquisitions in Cooperative Banks in India is growing and one major reason for the same is the RBI restrictive policy on issuing branch licenses for co-operative banks.
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