Saraswat Bank

In a strategic move set to reshape India’s cooperative banking landscape, the Reserve Bank of India has granted its formal approval for the merger of New India Cooperative Bank Ltd. (NICBL) with Saraswat Cooperative Bank. The decision is a significant consolidation in the urban cooperative banking sector, aiming to enhance financial stability, improve customer service, and streamline operations. The amalgamation comes at a time when regulators are encouraging healthier balance sheets, technological modernization, and increased trust in cooperative banks.

Saraswat Bank, India’s largest urban cooperative bank, has formally proposed a merger with the troubled New India Cooperative Bank (NICB), aiming to stabilize the latter’s operations and safeguard depositor funds. The move comes after NICB was rocked by a Rs. 122 crore fraud and placed under RBI administration earlier this year. Saraswat Bank Chairman Gautam Thakur assured that all 1.22 lakh depositors of NICB will receive full access to their savings with no loss or haircut. The merger, subject to shareholder and regulatory approvals, is expected to conclude by September 2025.