The acquiring of the Surat City Cooperative Bank by the Bombay Zoroastrian Cooperative Bank is expected to inaugurate a new trend of mergers and acquisitions in the cooperative sector.
The acquisition authorized by the statutory authorities is being seen as a salvage operation. The finances of the Surat City Cooperative Bank had been in a shambles and the bank had a huge loss stacked against it.
However, the acquisition has helped ZCBL transform into a multi-state scheduled urban cooperative bank. The Bombay Parsi bank with several branches of the Surat city cooperative bank will find it easy to expand its operations in the neighbouring Gujarat.
ZCBL is a well-known bank with nearly 50 thousand account holders transacting an annual business worth about thousand crore. It boasts an excellent Capital Adequacy Ratio. It is equipped with core banking solution and uses the latest technology in its banking operations.
According to a statement issued by ZCBL, given Gujarat has a considerable Parsi population the Parsi bank stands a chance of doing good business in Gujarat.