The Reserve Bank of India sanctioned the scheme of amalgamation of Navanirman Cooperative Urban Bank with the Telangana based Rajadhani Cooperative Urban Bank on Wednesday.
Reacting to this development, Rajadhani Cooperative Urban Bank Chairman Narasimha Reddy said, “We are happy that the RBI has given its nod for the merger of the ailing UCB i.e. Navanirman Cooperative Urban Bank with our bank. Without any delay, on 3rd August 2023, we performed Puja at its branch for a smooth running of the bank”.
The “Navanirman Cooperative Urban Bank is a unit bank having a single branch at Hyderabad city. The merger will benefit around 2000 people associated with the bank. The bank’s loss is around Rs 20 lakh and the total business of about Rs 10 crore”, said Reddy who is also on the board of Nafcub and Chairman of Telangana Urban Cooperative Banks Federation.
He further added that last year in February 2022, we had applied for the merger of this bank and after a 1.5 year, we got the approval from the RBI. Earlier, way back in 2010, we had taken over the Milli Co-Operative Urban Bank and in the future also we are looking forward to more merger”, Reddy underlined.
Besides, Rajadhani Cooperative Urban Bank has a business of more than Rs 300 crore and a net worth of Rs 18 crore. “There are six branches of the bank but with the merger with Navanirman Cooperative Urban Bank, it will have seven branches”, the Chairman said.
In its press release the RBI said, “The Scheme has been sanctioned in exercise of the powers conferred under Sub-Section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949. The Scheme will come into force with effect from August 03, 2023”.
“The branch of the Navanirman Co-operative Urban Bank Ltd., Hyderabad (Telangana) will function as a branch of Rajadhani Co-op. Urban Bank Ltd., Hyderabad (Telangana) with effect from August 03, 2023”, the release further added.
