The Hindu Business Line : Saraswat Co-op Bank plans to acquire Anyonya Co-op

Mumbai, May 5 Saraswat Co-operative Bank, India’s largest co-operative bank, has placed a valuation of around Rs 11 crore to acquire Anyonya Co-operative Bank, the country’s oldest co-operative bank.

Mumbai-headquartered Saraswat will shortly be conducting due diligence on the 120-year-old Baroda-based Anyonya and then move the regulators — Reserve Bank of India, Central Registrar of Co-operative Societies and the Registrar of Co-operative Societies (Gujarat) — with an acquisition proposal.

As of March-end 2009, Saraswat had a business size (deposits + advances) of Rs 21,000 crore, while Anyonya had a business size of around Rs 100 crore.

“We want to be a pan-India bank. In the last few years we have acquired seven urban co-operative banks in Maharashtra for an aggregate consideration of Rs 218 crore. Besides Anyonya, we are talking to couple of other co-operative banks to acquire them,” Mr E.K. Thakur, Chairman, Saraswat Co-operative Bank, said at the launch of the bank’s ‘Saraswati Education Loan Scheme’.

Saraswat has grown inorganically in the last few years by acquiring Maratha Mandir Co-operative Bank, Mandvi Co-op Bank, Annasaheb Karale Janata Sahakari Bank, Murgharajendra Sahakari Bank, Nasik People’s Co-op Bank and South Indian Co-op Bank.

The multi-state co-operative bank, which has presence in Maharashtra, Karnataka, Goa, Madhya Pradesh, Gujarat and New Delhi, will be opening 60 branches in 38 identified urban centres. Currently, it has a network of 177 branches.

“Though Anyonya has negative networth, our move to acquire it stems from the fact that it has a network of 11 branches and good clientele in Baroda,” said Ms S.S. Thakur, Deputy Managing Director, Saraswat Co-operative Bank.

On Saraswat’s education loan scheme, Mr Thakur pointed out that his bank’s scheme was more competitive than State Bank of India’s. On education loan up to Rs 4 lakh Saraswat will charge 11 per cent interest (as against SBI’s 11.5 per cent); loan above Rs 4 lakh and up to Rs 7.50 lakh, the co-operative bank will charge 10.50 per cent (SBI: 11.25 per cent); and above Rs 7.50 lakh and up to Rs 20 lakh the interest rate will be 10 per cent (SBI: 11 per cent).

According to the Chairman, the bank expects to ramp up its education loan portfolio from around Rs 60 crore now to Rs 250 crore by August.

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Saraswat Co-op Bank plans to acquire Anyonya Co-op