RBI approves merger of Mehsana Urban co-op bank and Surat Nagrik Sahkari bank

Melvyn Thomas wrote in the Times of India (April 26) :


SURAT : The Reserve Bank of India (RBI) has approved the merger of the Surat Nagrik Shahkari Bank with the Mehsana Urban Cooperative Bank, giving a big succor to the 44000 account holders and depositors in the city.
The account holders and depositors of Surat Nagrik Sahkari bank were on the tenterhooks after the bank was placed under directions by the RBI under section 25(a) of the Banking Regulation Act, 1949 on March 1.
Samir Patchigar, managing director of Surat Nagrik Sahkari Bank said, "We are grateful to the RBI for taking prompt decision on our bank's merger with the Mehsana Urban Cooperative Bank. This will end the 40 long years of Surat Nagrik bank's performance in the city. Now, the depositors and account holders will be catered by the Mehsana Urban bank"


"We were making all our efforts for getting the approval from the RBI regarding the merger of both the cooperative banks. It was only after the NoC was issued by the state registrar of banks that our merger procedure was completed at the earliest" added Patchigar.
Sources said that the Surat Nagrik Cooperative Bank had lost a whopping Rs 25 crore in the Madhavpura bank and Home Trade scams.