Mandvi Co-op to merge with Saraswat Bank
Mandvi Co-operative Bank Ltd, with a large Gujarati clientele, is to merge with India’s largest co-operative bank, Saraswat Co-operative Bank Ltd. "It is for the first time that a profit making co-operative bank is merging with Saraswat Bank," said Mr Eknath Thakur, Director, Saraswat Co-operative Bank.
"We have a strong Maharashtrian customer base and Mandvi Bank has a strong Gujarati clientele and the merger will help connect with Gujarati customers," said Mr Thakur at a press conference here on Thursday.
"The marriage of convenience will strengthen co-operative banks," said Mr Bhawanji Haria, Chairman, Mandvi Co-operative Bank.
Following the merger, Saraswat Bank is expected to have total business of around Rs 12,567 crore. With the 19 branches of Mandvi Co-operative Bank, its total branch network will stand at 105. The net profit of the Mandvi Co-operative Bank is around Rs 1.7 crore as on March 31, 2006 with net NPAs of 5.5 per cent. Saraswat Co-operative Bank recorded a net profit of Rs 101 crore as on March 31, 2006 and its net NPAs are nil.
"Saraswat bank will absorb all the 385 employees of Mandvi Co-operative Bank," said Mr Thakur. Mandvi Co-operative Bank is an authorised full-fledged moneychanger with paid-up capital of Rs 12 crore while Saraswat Bank has a paid-up capital of Rs 48 crore. Saraswat Bank and Mandvi Bank have a capital adequacy ratio of around 12.11 per cent and 12.30 per cent, respectively.
Mandvi Co-operative bank has a deposit base of Rs 575 crore and advances of Rs 307 crore while Saraswat has a deposit base of Rs 6,800 crore and advances of Rs 4,900 crore.
"The Memorandum of Understanding was signed by us two months ago and we have informed Reserve Bank of India, Central and State Registrars," said Mr Thakur.
Earlier in the year, Maratha Mandir Co-operative Bank had merged with Saraswat Bank.
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