Saraswat acquires Kolhapur Maratha Co-op Bank

Mumbai, July 11 (UNI) Saraswat Cooperative Bank has acquired Kolhapur Maratha Cooperative bank, a small-sized player in the cooperative segment, which incurred losses of Rs 20 crore in the financial year 2007.

As per the Memorandum of Understanding signed today, the merger will come into effect by August 15, Saraswat director and Rajya Sabha MP Ekanath Thakur to reporters here.

''We have taken a loss up to Rs 50 crore in the merger. However, the interests of despositors of Kolhapur bank will be guarded at all levels. Through this move, Saraswat is targeting Rs 20,000 crore deposit base by year 2008,'' he said.

Following the acquisition, Saraswat Bank would add 15 branches of Kolhapur bank to its existing 127 branches and will have post merger depositor base of 7.31 lakh.

''The bank has set a target which is largely based on inorganic growth than organic growth. The business is expected to cross Rs 25,000 crore by 2011 and Rs one lakh crore by 2020. The bank has also completed its core banking processs and will soon step into internet and mobile banking by the end of this year,'' Saraswat Chief General Manager D M Chandgadkar told UNI.

Kolhapur bank's deposits stood at Rs 65 crore last fiscal while advances was Rs 45 crore. The bank has a total of 170 employees with the operations focused in western Maharashtra.

Saraswat Cooperative Bank had recently acquired other loss-making lenders Maratha Mandir Cooperative Bank, Mandvi Cooperative bank, Annasaheb Karale Janata Sahakari Bank and Murgharajendra Sahkari Bank. After the acquisition, the bank's total staff strength will become 2686 and will have a business per employee at Rs 5.82 crore.

Bank's total deposits in last fiscal was Rs 9000 crore while advances at Rs 6000 crore.

The acquisition has come in line with the Reserve Bank directive, encourgaing consolidation among weak cooperative banks.

UNI