Saraswat Bank Seeks RBI Nod to Take Over New India Co-op Bank
Why in the news
Saraswat Cooperative Bank formally asked the Reserve Bank of India for permission to absorb the distressed New India Cooperative Bank. Shareholders of both lenders must also agree.
Key facts
- Saraswat would take over NICB’s assets and liabilities to protect depositors.
- Shares may go to NICB holders on a limited basis, leaving out anyone linked to fraud.
- NICB’s net worth was negative ₹102.74 crore in FY25.
Background: NICB’s crisis
| RBI action, February 2025 | Detail |
|---|---|
| Lending | Fresh loans barred |
| Withdrawals | Capped at ₹25,000 per depositor |
| Governance | Board superseded; administrator appointed |
The trigger was alleged fund misappropriation.
Exam angle
- Acquirer: Saraswat Cooperative Bank; target: New India Cooperative Bank.
- Regulator: RBI.