Rajkot Nagrik bank to merge with Junagadh Nagrik Co-op bank

Rajkot Nagrik Sahakari Bank (RNSB), which was in limelight last week during the Income Tax cross verification, has now planned to merge with Junagadh-based sick bank""Junagadh Nagrik Co-operative Bank (JNCB).

RNSB is waiting for an approval from the Reserve Bank of India.

RNSB has 23 branches across the state and one branch in Mumbai.

"After merging with JNCB, we will establish one more branch in Gujarat," said Jyotindra Mehta, chairman of RNSB.

He added, "We want to revive JNCB and therefore, we are taking the advantage of a revival scheme offered by RBI and state registrar."

After the merger, RNSB is eyeing sick co-operative banks in Vadodara.

"There are around four sick or small co-operative banks in Vadodara. Since we do not have our branch in Vadodara, we want to merge with them," said Mehta.

Mehta further added that RNSB has deposits worth Rs 825 crore and reserves of Rs 275 crore with more than 2.5 lakh shareholders.

"After the mergers, we are expecting a growth of 20 per cent in the next fiscal," he said.

Talking about the I-T raids in Rajkot last week, Mehta said there wasn't any raid. "The I-T officials were only doing cross verification on a few account holders at our bank."

"RNSB is not involved in any scam or scandal," he added.