Overview

• Saraswat Bank submitted its voluntary merger proposal and completed due diligence by mid-June to absorb New India Co-operative Bank.
• In February, the RBI imposed lending and deposit restrictions on New India and installed an administrator after uncovering a Rs 122-crore fraud by senior management.
• The merger guarantees all New India depositors full withdrawal rights with no haircuts once the deal closes.
• Saraswat aims for a one-to-two-year turnaround that will absorb New India’s assets and liabilities and grow its balance sheet past Rs 1 lakh crore.
• A full audit and cooperation with the Economic Offences Wing will prevent implicated executives from receiving share allocations.