The Hindu Business Line : Saraswat Bank to acquire Kolhapur Maratha Bank

Shareholders of the acquired bank will not receive any shares after merger since the bank is a loss-making one. “The merger is not with the intention of expansion but to protect small depositors,” Mr Eknath Thakur, Director and Chairman, HRD Committee, Saraswat Bank, said at a press conference here today.

The Kolhapur-based bank has reported an accumulated loss of Rs 24 crore till date and its gross non-performing assets stood at 40 per cent. It has a deposit base of Rs 65 crore and advances base of Rs 45 crore.

Saraswat Bank acquired Maratha Mandir Co-operative Bank, Annasaheb Karale Janata Sahakari Bank and Murgharajendra Sahakari Bank, and Mandvi Co-operative Bank earlier this year. With this merger, it will have a network of 142 branches.

The bank plans to conduct due diligence by screening every employee of Kolhapur Maratha Co-operative Bank before absorbing them at suitable levels in the organisation.

It also plans to conduct training sessions for the employees to accustom them with its products, software, systems and procedures. “There will also be training sessions on credit appraisal, monitoring and recovery procedures,” Mr Thakur said.

More Stories on : Mergers & Acquisitions | Co-operatives

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