After the recent merger of Nashik-based Saptashringi Co-op Bank with itself, the Mumbai-based Shamrao Vithal Co-operative Bank (SVC) is now eyeing the merger of two co-op banks, the Kolhapur-based Mahavir Co-op Bank with 11 branches and the Bangalore-based Sauhadra Co-op Bank with 11 branches.SVC, which has got the nod of the Reserve Bank of India (RBI) for the merger, hopes to take over both the co-op banks by October 2006.Speaking to Business Standard, Suresh Hemmady, chairman of SVC Bank, said: "After Reserve Bank of India (RBI)'s restrictions imposed on co-operative banks on opening new branches, we are left with no choice but to look for mergers with similar banks or acquire smaller or weaker banks as a growth driver. We have just completed the merger of Nashik-based Saptashringi Co-op Bank with two branches. Now, we are taking over Kolhapur-based Mahavir Co-op Bank and Bangalore-based Sauhadra Co-op Bank with 11 branches each. We expect the merger of both the co-op banks with SVC by October 2006.""In fiscal year 2005-06, SVC registered 35% growth in overall business. The bank's turnover in 2005-06 was Rs 4,500 crore, of which 70% was in the form of fixed deposits. We have set a target of Rs. 5,500 crore business by December 2006 in the current fiscal year," Hemmady added.The bank earned a net profit of Rs 54 crore in FY06, and has set a target of Rs 60 crore for FY07. The NPA of the bank is 1.89%, he added.The bank has a network of 48 branches spread over Mumbai, Pune, Aurangabad and Nashik in Maharashtra, Bangalore and Goa. The bank has 750 employees and 70,000 share holders.
