Saraswat Bank Proposes Amalgamation with NICB to Strengthen Cooperative Sector

In a significant move for the cooperative banking sector, Saraswat Co-operative Bank has announced its intention to amalgamate with New India Co-operative Bank Ltd. (NICBL). This decision was revealed during a press conference held on July 1, 2025, in Mumbai, by Gautam Thakur, Chairman of Saraswat Co-operative Bank. The proposed merger, which is subject to approval by the shareholders of both banks and the Reserve Bank of India (RBI), aims to enhance the operational capabilities of Saraswat Bank and expand its customer base.

Established over a century ago, Saraswat Co-operative Bank is the largest urban cooperative bank in India, boasting a strong legacy of financial stability and customer service. As of March 31, 2025, the bank reported a total business of ₹91,814 crore, with deposits of ₹55,481 crore and advances of ₹36,333 crore. Furthermore, it achieved a net profit of ₹518.25 crore, maintaining impressive asset quality characterized by gross non-performing assets (NPAs) at 2.25% and net NPAs at zero for three consecutive years. The Capital to Risk-weighted Assets Ratio (CRAR) stands at a robust 17.43%.

In contrast, New India Co-operative Bank, which operates 27 branches primarily in Mumbai and its surrounding areas, reported a total business volume of ₹3,560.52 crore as of the same date. Despite having deposits of ₹2,397.85 crore and advances of ₹1,162.67 crore, NICBL has faced financial challenges, culminating in a negative net worth of ₹102.74 crore for the fiscal year 2024-25.

Saraswat Bank has a history of successfully acquiring and revitalizing financially distressed cooperative banks, having previously taken over institutions such as Maratha Mandir Co-operative Bank and Mandvi Co-operative Bank. Through these acquisitions, it has safeguarded the interests of more than eight lakh depositors and significantly increased the combined business of the acquired banks from ₹1,900 crore to ₹9,200 crore within five years. This consistent track record underscores Saraswat Bank’s commitment to the cooperative movement and financial inclusion.

The proposed merger with NICBL is expected to not only protect the interests of its depositors but also to strengthen the urban cooperative banking sector as a whole. With the amalgamation, Saraswat Bank will assume all assets and liabilities of NICBL, assuring full protection for depositors. The bank aims to welcome NICBL’s depositors into its fold, thereby continuing its mission of responsible and inclusive banking.

The implications of this merger extend beyond the immediate financial landscape. Economically, it signifies a consolidation trend among urban cooperative banks, which may enhance their stability and service capabilities in the long run. Socially, the merger could foster greater trust in cooperative banking institutions, particularly among depositors seeking reliable banking solutions. Politically, it aligns with the government's objectives of promoting cooperative banking as a viable alternative to traditional banking systems, ensuring that underserved populations have access to financial services.

In conclusion, the proposed amalgamation of Saraswat Co-operative Bank and New India Co-operative Bank represents a pivotal moment in the cooperative banking sector. As the process unfolds, stakeholders will be closely monitoring the developments, particularly regarding shareholder reactions and regulatory approvals. This merger not only promises to uplift the financial health of NICBL but also reinforces the importance of cooperative banks in India’s broader economic framework.