The Hindu Business Line : SICB branches come under Saraswat Coop Bank

SICB, which has 12 branches and 2 extension counters spread across Mumbai and Navi Mumbai, has been under a moratorium from August 9, 2004 due to poor financial health. The merger would take the total number of Saraswat Bank’s branches to 170.

Relief to depositors

The merger will give relief to 66,000 depositors, a press release issued by the bank said.

Giving details of the merger, a Saraswat Bank official said the SICB depositors, with deposits up to Rs 1 lakh, would get their full amount (55 per cent from Saraswat Bank and the remaining 45 per cent from the Deposit Insurance and Credit Guarantee Corporation).

However, depositors with more than Rs 1 lakh, will get only 55 per cent of the amount from Saraswat Bank. They will have to forego the balance as they are not eligible for deposit insurance.

But this has caused a lot of resentment among the depositors of SICB. They believe that the bank should have given the balance 45 percent amount on deferred payment basis instead of cancelling the whole amount.

The bank official clarified that the SICB depositors will be paid interest till August 31 this year, irrespective of the value of the deposits.

The total loss incurred by SICB is still being computed and the final figure would be arrived soon, said Mr S.K Banerji, Managing Director, Saraswat Bank.

Commenting on the fate of 95 SICB staff, Mr Banerji said the bank would absorb all the employees of SICB but their payment and service conditions will be decided after the screening procedure.

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