In a major relief to the depositors of Pune headquartered Rupee Cooperative Bank, the leader of UCBs in the country- Saraswat Bank- has evinced interest in taking over the ailing Rupee Bank.
The Saraswat bank has put a proposal of merger not only before the Board of administrators of the Rupee Bank but also before the RBI. The proposal assures protecting the interest of depositors fully, with a little help from DICGC.
Talking to the Indian Cooperative, Saraswat Bank Chairman Gautam Thakur said that some of the depositors have been asking us to take over Rupee Bank and after studying the matter and carrying out due diligence we have decided to go for it.
Reiterating his commitment to the cooperative sector, Thakur said that Saraswat Bank is ready to work on retaining banks within the cooperative fold not only now but also in the future. “This will not only be for our inorganic growth which will happen anyway but is also aimed at strengthening the co-operative sector and helping the depositors.
Talking about the rich legacy of Rupee Bank, Saraswat Bank Chairman said that it was set up by Lokmanya Tilak and has great nostalgic value. “It’s even older than Saraswat Bank and once upon a time it also used to be bigger than us”, said Thakur underlining the reasons behind this decision.
Calling it a win-win situation both for the depositors of Rupee Bank and the Saraswat Bank, Thakur revealed that Saraswat Bank has taken over about 8 failed banks in the past and has saved more than 1 million depositors in the last 10-15 years. “We are proud of having done so”, he stated.
Assuring the depositors of the ailing Rupee Bank, Thakur promised that there would be no haircut and their money would be fully protected. Even those depositors having more than Rs 5 lac would be given good returns such as 6%, added the Chairman.
Thakur also assured that the license of the bank would also be utilized mostly in Pune and at most in other parts of the state of Maharashtra, countering those who think the license would be taken to other states.
According to reliable sources, the Administrator of the Rupee Bank, Sudhir Pandit is excited about the idea of Saraswat Bank taking over the Rupee Bank. Pandit is planning to call a press conference to announce the development, said sources.
It is indeed a matter of great relief for the co-op sector that at a time when smaller UCBs are showing an inclination to shift to small finance banks due to a host of factors, a big player like Saraswat Bank has come forward to handhold them and take them out of the woods. Gautam Thakur said confidently “Yes you can quote me that we will work hard to retain ailing banks to the co-op fold in future also”.
Great News ! provided that it should turn to reality,Thanks n Best Wishes to the Rupee administrator for his best efforts to resolve the problem.
nice initiative by saraswat bank.
Wish saraswat bank should have taken over Pmc Bank too so that 250+ innocent depositors would not have died.
Kishor Modsing
Pmc Bank depositor
Cancer patient
Great news in the end of year 2021 all go well n smooth by the grace of GOD
Good decision by Saraswat Bank in the interest of both customers and staff of Rupee Cooperative Bank . Hope the proposed merger will be a grand success ! 👏
Saraswat Bank has done it earlier also in the year 2008, when South Indian Co-operative Bank was merged with it. It was a DICGC assisted merger, in which no depositor lost his deposit. The transition was very smooth. I was CEO of DICGC at that time.
True..it will be win win situation
Great news
Please takeover PMC Bank
A great challenge will again come true, when take over of ailing Rupee Bank is finalised by RBI and other concerned authorities. The depositors of Rupee Bank can feel a sigh of relief. Commendable decision by Mr Thakur, Chairman of Saraswat Bank and the Administrator of ailing Rupee Bank.
Great move by Saraswat Bank. A great boost and lovely and exemplary gesture shown by the leader bank-Sararwat. The great relief to the depositors of ailing Rupee Bank, which once a leading UCB in Maharastra. A commendable decision by Mr Thakur, for UCBs. Kudos to him.