Saraswat Bank, India’s largest urban cooperative bank, has announced on Tuesday that it plans to merge the crisis-hit New India Cooperative Bank (NICB) with itself.Saraswat Bank’s chairman Gautam Thakur has assured that there will not be any haircut for any of the over 1.22 lakh depositors of fraud-hit NICB, and all the savings will be protected, PTI reported.Depositor protection and access to fundsCurrently, the NICB depositors face withdrawal limits of ₹25,000 per account due to the crisis.Once the merger is finalised, depositors will be able to access the full amount, Thakur said, adding that he expects the merger to complete by end-September.Also Read | Banks earnings will be reduced in Q1FY26 due to weak loan growth, lower margins and soft fee: ReportThakur also said the bank has no immediate plans to convert into a commercial lender, and is keen to continue working as a cooperative bank.However, he indicated that the bank might consider becoming a universal bank whenever the statutes permit, he said.Merger timeline and process”We have voluntarily approached the RBI for the merger of Saraswat with NICB,” Thakur said.Saraswat Bank has merged seven crisis-hit banks with itself in the past and showed confidence that the merger with NICB will also go through.Also Read | Credit score can affect your job prospects: SBI case highlights key lessonsAfter the shareholder nod, both banks will go to the RBI for clearance, and the central bank will announce an effective date for the merger. In this process, the shareholders of NICB will be given shares in Saraswat Bank in a predetermined ratio.NICB’s financial status and turnaround strategyNICB has been under an RBI-appointed administrator since February due to an alleged ₹122 crore embezzlement of funds by top management. As of March 2025, the bank held over ₹1,100 crore in assets, Thakur told PTI.Stressing that not every loan made by NICB is an NPA, Thakur is confident that Saraswat, with an asset size exceeding ₹36,000 crore, will absorb the impact of the merger.Also Read | Asian Banks Fuel More Than $2 Billion Loan Boom in Middle EastThakur estimated that it will take around 18-24 months to turn around NICB.What will happen to NICB employees?According to Thakur, the bank will absorb as many of the 200 remaining NICB employees after evaluating them. However, any employees associated with the fraud will not be retained.NICB has 27 branches, including 17 in Mumbai, whereas Saraswat Bank has 120 branches in the city, including 30 which have come from banks merged in the past, the news agency reported. in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
Saraswat Bank intends to take over the troubled New India Cooperative Bank, and has contacted the RBI regarding this matter. Should depositors of NICB be concerned?
