Saraswat Bank has applied to the Reserve Bank of India (RBI) to acquire New India Co-Operative Bank Limited., Mumbai (NICB). In February, RBI imposed restrictions on NIBC for a 122 crore embezzlement scandal that also includes senior management. RBI appointed administrator Shreekant, and it was reported that the bank’s collection has doubled over the last four months.
The NICB depositors can withdraw up to Rs 25,000 per account. Post-merger, the depositors will be able to access their full amount.
Saraswat Bank’s Chairman, Gautam Thakur, assured depositors about their savings in the NICB and will protect them once the merger is finalised. He anticipates approval from the RBI and shareholders to complete the merger by August or September.
Thakur conveyed, “We have merged seven such banks with ourselves in the past, helping over eight lakh depositors without any haircut.” He further continued, “As the largest player in the urban co-operative space, it is incumbent upon us to step in. The interest of depositors remains our utmost priority.”
The proposed merger secures the customer deposits and ensures continuity for most of the NICB employees. They will be retained after an evaluation, and those who are associated with the fraud will not be given a chance.
