- The Reserve Bank of India (RBI) has approved two voluntary mergers in the urban co-operative banking (UCB) sector.
- The Citizen Co-operative Bank, based in Vasco-De-Gama, Goa, will merge with TJSB Sahakari Bank, headquartered in Thane, Maharashtra, while Pune Commercial Co-operative Bank, located in Satara, Maharashtra, will amalgamate with Pimpri Chinchwad Sahakari Bank, based in Pune, Maharashtra.
- According to an official statement from the central bank, the amalgamation of The Citizen Co-operative Bank with TJSB Sahakari Bank has been sanctioned under the powers granted by the Banking Regulation Act, 1949.
- This merger will take effect from February 10, 2025 (Monday), after which the Goa-based UCB’s branches will operate as part of TJSB Sahakari Bank.
- Similarly, in a separate announcement, the RBI confirmed the approval of the merger between Pune Commercial Co-operative Bank and Pimpri Chinchwad Sahakari Bank, also under the Banking Regulation Act, 1949.
The Reserve Bank of India (RBI) has approved two voluntary mergers in the urban co-operative banking (UCB) sector. The Citizen Co-operative Bank, based in Vasco-De-Gama, Goa, will merge with TJSB Sahakari Bank, headquartered in Thane, Maharashtra, while Pune Commercial Co-operative Bank, located in Satara, Maharashtra, will amalgamate with Pimpri Chinchwad Sahakari Bank, based in Pune, Maharashtra.
According to an official statement from the central bank, the amalgamation of The Citizen Co-operative Bank with TJSB Sahakari Bank has been sanctioned under the powers granted by the Banking Regulation Act, 1949. This merger will take effect from February 10, 2025 (Monday), after which the Goa-based UCB’s branches will operate as part of TJSB Sahakari Bank.
Similarly, in a separate announcement, the RBI confirmed the approval of the merger between Pune Commercial Co-operative Bank and Pimpri Chinchwad Sahakari Bank, also under the Banking Regulation Act, 1949. This consolidation will come into effect on the same date, February 10, 2025, with the branches of the Satara-based UCB functioning as branches of Pimpri Chinchwad Sahakari Bank.
The expansion of UCBs accelerated in the 1990s due to a liberalized licensing policy. However, over time, nearly one-third of the newly established banks became financially unviable. In response, the RBI initiated a consolidation process in 2004-05, which included merging struggling UCBs with stronger institutions, shutting down non-viable entities, and pausing the issuance of new licenses. As a result, the total number of UCBs declined from 1,926 to 1,472 over the past two decades, as highlighted in the RBI’s Report on Trend and Progress of Banking in India.
Since 2004-05, the UCB sector has undergone 156 mergers, including six in the financial year 2023-24. Among these, three took place in Maharashtra, two in Telangana, and one in Gujarat. Maharashtra has witnessed the highest number of mergers in the past 20 years, followed by Gujarat and Andhra Pradesh.
Additionally, during 2023-24, the RBI revoked the licenses of 24 UCBs, bringing the total number of cancellations since 2015-16 to 70. Of these cancellations, 94.3% were from the non-scheduled category.