RBI approves merger of National Co-operative Bank with Cosmos Co-operative Bank

RBI approves merger of National Co-operative Bank with Cosmos Co-operative Bank

Reserve Bank of India on January 3 said it has approved the voluntary merger of The National Co-operative Bank Ltd., Bangalore (Karnataka) with Cosmos Co-operative Bank Limited (Maharashtra).

"The Scheme of Amalgamation has been sanctioned in exercise of the powers conferred under Sub-Section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949. The Scheme will come into force with effect from January 6, 2025," said RBI in a statement.

The branches of The National Co-operative Bank Ltd., Bangalore (Karnataka) will function as branches of Cosmos Co-operative Bank Limited (Maharashtra) with effect from January 6, 2025, said the banking regulator.

National Cooperative Bank Ltd. has a total of 13 branches— 12 in Bangalore and one in Mysore.

Mumbai-based Maratha Sahakari Bank (with 7 branches) and Sahebrao Deshmukh Sahakari Bank (with 11 branches) merged into Cosmos Bank in the financial year ended March 2024.

In July 2023, RBI had imposed business restrictions on The National Co-operative Bank Ltd and capped deposit withdrawal at Rs 50,000 per account. The action was triggered by the weak financial position of the bank.