The Hindu Business Line : IOB interested in Pune-based co-op bank

IOB will begin the process of due-diligence and will make a decision within six months, the bank’s Chairman and Managing Director, Mr S.A. Bhat, told Business Line on Monday.

Shree Suvarna Sahakari has 12 branches — two of which are in Mumbai, and the rest in and around Pune. Currently, it is under moratorium and is run by an administrator. It has deposits of about Rs 700 crore and advances of Rs 500 crore. NPAs (non performing assets) are high and their recoverability will be factored into the price that IOB will quote, Mr Bhat said.

Asked why IOB was interested in this small bank, Mr Bhat said that Shree Suvarna’s branch network would give IOB more footprint in the “lucrative Western market”.

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