Customers of the troubled National Industrial Co-operative Bank (NICB) may soon get long-awaited relief as Saraswat Bank has officially submitted a proposal to amalgamate NICB into its operations. The move, aimed at protecting depositors and restoring banking services, is currently under review by the Reserve Bank of India (RBI).
NICB has been under regulatory restrictions for several months due to poor asset quality, rising non-performing loans, and financial instability. The RBI had imposed withdrawal caps and halted new lending, leaving thousands of customers unable to access their full savings.
Saraswat Bank, India’s largest urban co-operative bank, has expressed willingness to absorb NICB’s operations, employees, and liabilities. Sources familiar with the proposal say the merger is structured to ensure depositors’ funds are protected, and that NICB’s existing accounts would be seamlessly transitioned into Saraswat’s system after approval.
Regulatory officials are currently conducting due diligence and reviewing compliance requirements before granting approval. If cleared, the merger could take effect within the current quarter.
The RBI has encouraged stronger co-operative banks to support weaker ones through mergers to avoid customer hardship and preserve trust in the sector. Customers of NICB are advised to await official updates as the regulatory process moves forward.
