Merger season on for Gujarat co-op banks

Close on the heels of Ahmedabad-based Manekchowk Co-operative Bank's decision to merge with Mumbai's Abhyudaya Co-operative Bank, a number of co-operative banks in the state are exploring similar options.

These include Amruta Mahila Sahkari Bank, Limbdi Nagrik Sahkari Bank, The People's Co-operative Bank, and United Co-operative Bank.

The Co-operative Bank of Rajkot has decided to acquire Amruta Mahila Sahkari Bank of Surendranagar.

"Both banks have passed a resolution to this effect and have also received approval from the Registrar of Co-operatives. We are now awaiting Reserve Bank of India's approval," Satyaprakash Khokhar, general manager, Co-operative Bank of Rajkot said.

Limbdi Nargarik Sahakari Bank has also decided to merge with another bank. Confirming the move, Gajubha Rana, CEO, Limbdi Nagrik Sahkari Bank, said, "As we are making losses, we have to merge with another cash-rich bank." The bank has also passed a resolution to this effect and approached the Bavla Nagrik Sahkari Bank.

A senior official of Bavla Nagrik Sahkari Bank said that their board had passed the proposal to merge with the Limbdi Nagrik Sahakari Bank. "We have also agreed to absorb all the 14 employees," he said.

Meanwhile, People's Co-operative Bank of Surendranagar is in merger talks with three to four banks. The bank, with a working capital of Rs 56 crore and 9 branches, was reportedly in talks with Mumbai-based The Kapol Co-operative Bank.

However, KD Vora, chairman, Kapol Co-op, said, "Our team visited People's Co-operative Bank and has scanned its balance sheet." The People's co-op. bank is also in talks with Cosmos Bank of Pune and Kalupur Commercial Co-op bank of Ahmedabad.

The proposal of merger of Nadiad-based United Mercantile Bank Ltd with Prime Coop Bank Ltd, Surat, is pending with the RBI.

In the last three years, as many as 14 Gujarat-based co-op banks have opted for merger. Among the banks that merged with another bank are Vanthali Vibhagiya Nargirk Sahakari Bank, Mahila Utkarsha Nargrik Sahkari Bank Ltd, Junagarh Vibhagiya Nagrik Sahkari Bank Ltd, Tapi Coop Bank, Adajan Nagrik Sahkari Bank, Ankleshwar Taluka Mahila Coop Bank, Naroda Industrial Coop Bank, Chital Nagrik Sahkari Bank and Nutan Coop Bank to name a few.