Banking News

Cosmos Co-operative Bank concludes 18 mergers


Pune-based Cosmos Co-operative amalgamated with itself Sahebrao Deshmukh Co-operative Bank with ten branches in Mumbai and one in Satara post the Reserve Bank approving the voluntary merger between the two co-operative banks. The merger comes into effect from September 26.

Cosmos bank will have a balance sheet size of around Rs 32,000 crore post the merger with the recent amalgamation adding Rs 200 crore to its balance sheet strength. The latest merger is Cosmos Co-operative bank’s tally of merged banks with itself is 18. With this merger Cosmos Bank now has 50 branches in Mumbai while it has 170 branches in 7 states across India.

For the Financial Year ending in March 2023,Bank has earned net profit of Rs. 151 Crore. The bank distributed an 8% dividend to its shareholders. Bank’s share capital and own funds are over Rs. 2000 Crore.

“Due to severe competition, it has become difficult for small cooperative banks to sustain” said the bank’s chairman Milind Kale. “In this scenario, Cosmos Bank has assured depositors of the security of their funds in cooperative banks”. The bank has also focused on recoveries and has managed to recover loans worth Rs 550 crore las financial year.

The Cosmos- Bank -Sahebrao Deshmukh merger assumes significance as the Reserve Bank top brass met the top brass of many top officials of urban cooperative banks urging them to focus on the sector and control the asset quality and improve governance In an interaction with directors of some of the Mumbai-based UCBs recently Das urged them to work on improving asset quality and bettering underwriting standards.

Union Home Minister Amit Shah in a speech last week said that the cooperative sector is still relevant today, but it has been negatively impacted by political interference in the past.


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