Nod for take over of B'lore Central Co-op Bank

The Karnataka State Co-operative Registrar has approved the takeover of the Karnataka-based Bangalore Central Co-operative Bank Ltd (BCCB) by Shamrao Vithal Co-operative Bank Ltd (SVCB).

The nod follows the earlier approval of the Reserve Bank of India. The merger process will be completed by the end February 2007.

The total deposits and advances of BCCB as on September 2006, with its 11 branches in Bangalore, stood at Rs 144 crore and Rs 42 crore respectively.

SVCB has an authorised capital of Rs 100 crore and a networth of Rs 207 crore. The bank has 59 branches and extension counters in Maharahstra, Karnataka and Goa. At the end of the financial year 2005-06, it had a total deposits of Rs 4,500 crore and reported a PAT of Rs 21 crore.

Suresh Hemmady, chairman of SVCB, said "This will be our third acquisition in the current financial year, the other two being the Nashik-based Shri Saptashrungi Urban Co-operative Bank and the Kolhapur-based Shri Mahavir Co-operative Bank. I am confident that just as the stakeholders including customers of these two banks have continued their association with our bank, BCCB's stakeholders will equally be comfortable and satisfied dealing with SVC Bank."

He said the acquisition route was the only option available today to growth-driven and successful cooperative banks such as SVCB in view of the restrictions imposed on co-operative banks by the RBI on opening of new branches. "We are expanding through strategic acquisitions of smaller co-operative banks."

The 100-year-old SVCB is positioning itself to meet the rapidly changing environment in the banking sector.

"While we have the unstinting patronage of our senior customers, we are now taking steps to ensure that the bank is also looked on as a natural choice by youngsters," said Hemmady.