Focus Merit

New India Co-op Bank to be converted into Small Finance Bank

New India Co-operative Bank (NICB) has been decided to be converted into a Small Finance Bank (SFB) after being agreed by its shareholders under Voluntary Transition of Primary (Urban) Co-operative Banks (UCBs) into SFB. NICB will now approach the Reserve Bank of India (RBI) and Central Registrar of Societies for further action. The bank currently has 31 branches across Maharashtra and Gujarat and has networth of Rs. 230 crores.

Recently, Uttar Pradesh-based Shivalik Mercantile Co-operative Bank has taken the lead among urban co-operative banks to convert into a Small Finance Bank. With two multi-state Urban Co-operative Banks (UCBs) initiating steps to convert into a SFB, larger UCBs such as Saraswat Co-operative Bank, SVC Co-operative Bank, Bharat Co-operative Bank, Abhyudaya Co-operative Bank and Thane Janata Sahakari Bank, are also expected to weigh the possibility of converting into an SFB.