Rupee Cooperative Bank seeks partial merger with Thane Janata Sahakari Bank

The Rupee Cooperative Bank has sought partial merger of its assets and liabilities with the Thane Janata Sahakari Bank (TJSB). A proposal in this regard has been sent to Reserve Bank of India.

The Pune-based Rupee Cooperative Bank has been under special directions of the RBI since 2013. The RBI had suspended the then board of directors of the bank and put it under directions, which put sanctions on the functioning of the bank. Pandit said the current proposal would allow for partial takeover of the assets and liabilities of the Rupee Bank by the TJSB.

“Such partial merger has been allowed between cooperative banks and public sector banks, but has not been allowed between cooperative banks so far,” he said.