Cosmos bank approves mergers
Pune-based Cosmos Co-operative Bank Ltd’s board has approved the merger of two banks, one each in Hyderabad and Gujarat, and is in the process of submitting its proposal to the Reserve Bank India (RBI), said M L Abhyankar, chairman, Cosmos.
The bank had last month acquired Gujarat-based banks, Unnati Co-operative Bank and Bank of Ahmedabad.
Explaining that inorganic growth was high priority on its agenda, Abhyankar said, “Both the banks in Gujarat and Hyderabad have one branch each and are in profit. We have got the clearance for its acquisition from the boards of the respective banks as well as our board and have prepared a scheme for acquisition which we will submit to the RBI.”
Also on the radar for acquisition is the Suvarna Sahakari Bank, which has 13 branches — 2 in Mumbai, 1 in Akluj and 10 in Pune.
“We have received the last audited balance sheet of Suvarna Sahakari and after studying that have fixed a meeting with the general body (GB) of Suvarna Sahakari by the end of the month,” said Abhyankar while pointing out that the proposal needs to be cleared at the GB after which it will be submitted to the RBI for due diligence.
The other unofficial contender for the Suvarna Sahakari Bank is Saraswat Co-operative Bank.
The losses for Suvarna Sahakari, according to government officials, are to the tune of Rs 400 crore.
However S V Bugde, managing director, Cosmos, said, “The last audited balance sheet shows a cash loss of Rs 4-5 crore.” Sharing the capital requirements for the proposed merger, he said, “We will invest Rs 110-120 crore in the bank.”
Also due for reviewing this year are co-operative banks, Satguru Jangli Maharaj, Suvarna Yug, Peoples Co-operative Bank and Ruppee Co-operative Bank which have been placed under an administrator’s rule for the last five and whose terms come to an end this year.
Anil Diggikar, commissioner (Co-op), Maharashatra, said, “Of the four, Suvarna Yug and People’s Co-operative are in profit. However, the RBI has to decide on the future course of action for the loss-making units whether they will continue under the administrator’s guidance for one more year.”
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