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Saraswat Cooperative Bank has approached the Reserve Bank of India (RBI) to merge ailing New India Cooperative Bank (New India) with itself if there is shareholder approval at both the entities.
The RBI in February had prohibited New India, based in Mumbai, from issuing fresh loans and suspended deposit withdrawals for six months.
The RBI then superseded the board and appointed an administrator for the bank. Later depositors were allowed to withdraw up to ₹25,000.
The RBI’s intervention was triggered by allegations of fund misappropriation by some officials of New India. The net worth of the lender had turned negative.
