Financial Daily from THE HINDU group of publications
Sunday, Jan 08, 2006
Financial Daily from THE HINDU group of publications Sunday, Jan 08, 2006 |
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Money & Banking
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Co-operatives Shamrao Vithal Co-op Bank gets nod to take over two UCBs Priya Nair
Mumbai , Jan. 7 SHAMRAO Vithal Co-operative Bank Ltd (SVC) has got the Reserve Bank of India's approval to take over two Urban Co-operative Banks - Saptashrungi Co-operative Bank with two branches in Nashik and Samasta Nagar Co-operative Bank with four branches in Mumbai. The bank is still working out details of the cost and impact of the non-performing assets (NPAs) of the banks. Mr Suresh Hemmady, Chairman, SVC, said; "We are hopeful that RBI will give us five years to write off the losses of these two banks." SVC has a network of 38 branches and five extension counters spread over Mumbai, Pune, Aurangabad and Nasik in Maharashtra, Bangalore and Goa. The bank has also been one of the few co-operative banks to offer technology-driven services such as statements of account through mobile phones, payment of utility bills through the Internet and Real Time Gross Settlement facility. For the financial year 2004-05, SVC made a profit of Rs 21 crore and is targeting a profit of Rs 25 crore in 2005-06, according to Mr Hemmady. The net worth of the bank is over Rs 250 crore. As RBI has kept co-operative banks' branch expansion on hold, these banks are left with no choice but to look for mergers with similar banks or acquire smaller or weaker banks.
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