New India Co-operative Bank shareholders decides to convert it into small finance bank

The New India Co-operative Bank (NICB) said its shareholders have decided to convert it into a small finance bank. The move comes after some regulatory changes by the RBI came into effect. NICB shareholders passed the resolution at a special general body meeting.

The decision has been taken under Voluntary Transition of Primary (Urban) Co-operative Banks (UCBs) into Small Finance Banks (SFBs), it said. Its vice chairman Hiren Bhanu said has a net worth of Rs 230 crore as compared to the Rs 200 crore required under regulations, and also has sound financial indicators like less than 0.5% net non-performing assets and capital adequacy of over 12%.

The bank, which operates in Maharashtra and Gujarat, said it is well placed from a technological platform perspective and exuded confidence of meeting all the criteria to get itself converted into a small finance bank.