Mumbai, July 2, 2025 — Saraswat Co-operative Bank has announced plans to merge New India Co-operative Bank (NICB) into its fold, marking a strategic effort to rescue the ailing bank. The voluntary merger is expected to stabilize NICB’s operations, which have been under strain following a major fraud case and regulatory curbs.
The merger has received initial clearance from the Reserve Bank of India (RBI), and both banks will now seek shareholder approval before finalizing the arrangement. Once approved, the full merger is anticipated to take effect by September 2025.
As part of the integration, Saraswat Bank will assume all of NICB’s assets and liabilities, safeguarding the interests of over 1.2 lakh depositors. Customers of NICB will regain full access to their funds after the merger is completed, with no financial loss expected.
Saraswat Bank, known for its successful track record in reviving troubled co-operative banks, will retain only employees not linked to past irregularities. The merger will also help expand Saraswat’s presence in Mumbai, where NICB currently operates 17 branches.
This will be Saraswat’s eighth such revival, reinforcing its commitment to strengthening the co-operative banking ecosystem.
