RBI clears amalgamation of 2 urban co-op banks
The Reserve Bank of India (RBI) has approved two voluntary amalgamations in the urban co-operative bank (UCB) space — The Citizen Co-operative Bank (Vasco-De-Gama, Goa) with TJSB Sahakari Bank (Thane, Maharashtra) and Pune Commercial Co-operative Bank (Satara, Maharashtra) with Pimpri Chinchwad Sahakari Bank (Pune, Maharashtra).
RBI said the Scheme of Amalgamation of The Citizen Cooperative Bank with TJSB Sahakari Bank has been sanctioned in exercise of the powers conferred on it under the Banking Regulation Act, 1949, per a central bank statement.
The Scheme will come into force with effect from February 10, 2025 (Monday), whereby the branches of Goa-based UCB will function as branches of TJSB Sahakari Bank.
In a separate statement, RBI said the Scheme of Amalgamation of Pune Commercial Co-operative Bank with Pimpri Chinchwad Sahakari Bank has been sanctioned in exercise of the powers conferred on it under the Banking Regulation Act, 1949.
Since 2004-05, the UCB sector has witnessed 156 mergers, including six in 2023-24, of which three were in Maharashtra, two were in Telangana and one was in Gujarat. Maharashtra accounted for majority of the mergers in the last two decades, followed by Gujarat and Andhra Pradesh, the report said.
