Thane Janata to buy three co-op banks

The Thane Janata Sahakari Bank is close to acquiring three co-operative banks in Maharashtra - two in Pune and one in Nashik - and expects to close the deals with in the next two to three months.

The company has finalised the process and is awaiting regulatory approvals, while financial details of the acquisitions were not revealed.

"Navajeevan Sahakari Bank and Sadguru Jangali Maharaj Bank are the two Pune-based banks on Thane Janata Sahakari Bank's radar for which the due diligence has been completed. The company has initiated talks with a third co-operative bank in Nashik," CEO R G Karve sid on the sidelines of a press conference here today.

He, however, did not divulge the name of the third bank. Industry sources said the Nashik-based bank has 13 branches and had transacted business worth Rs 300 crore in last financial year.

"All the three banks have posted negative capital adequacy and are acquiring the banks including all assets, debts and liabilities. Thane Janata Sahakari Bank has filed proposals with the Commissioner of Cooperatives and the Reserve Bank of India and is awaiting regulatory approvals," Karve added.

Navajeevan Sahakari Bank has transacted business worth Rs 30 crore in the last fiscal and has a lost of around Rs 5 crore. The bank has 3 three branches in Pune. While Sadguru Jangali Maharaj Bank has transacted business of Rs 500 crore, has losses of around Rs 40 crore.