The Reserve Bank of India (RBI) recently announced the approval of the voluntary merger of The National Co-operative Bank, Bangalore, Karnataka, with Cosmos Co-operative Bank, Maharashtra.
RBI stated, “The Scheme of Amalgamation has been sanctioned under Sub-Section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949. The Scheme will come into force with effect from 6th January, 2025.”
Following the merger, all 13 branches of The National Co-operative Bank—12 in Bangalore and one in Mysore—will operate as branches of Cosmos Co-operative Bank starting 6th January, 2025.
The Pune-based Cosmos Co-operative Bank has been actively expanding its reach through mergers. In the financial year ending March 2024, Cosmos Bank incorporated Mumbai-based Maratha Sahakari Bank, with seven branches, and Sahebrao Deshmukh Sahakari Bank, with 11 branches.
This latest merger further strengthens Cosmos Bank’s presence in Karnataka, adding to its existing operations in Maharashtra and other states.
In July 2023, the RBI imposed restrictions on The National Co-operative Bank due to its weak financial position. Withdrawal limits were capped at Rs 50,000 per account, affecting customers and signaling the bank’s instability. The merger aims to provide a stable framework for customers and enhance service continuity under Cosmos Bank’s robust infrastructure.
With this move, Cosmos Bank solidifies its position as one of India’s largest co-operative banks, integrating diverse regional networks under a unified structure.
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