Co-Operative Bank News

Allow Urban Co-op Banks to issue share certificate

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To strengthen Urban Co-operative Banks (UCBs), a discussion paper by the Reserve Bank has proposed to allow them, especially larger ones, to issue 'Special Share Certificates' (SSCs) that can be counted as core capital but won't have voting rights.

They can be traded on the bank's website or, eventually, stock exchanges to attract more investors. The paper suggests permitting UCBs to offer loans to Perpetual Non-cumulative Preference Shares (PNCPS) investors, up to certain limits, to make these investment options more appealing.

TJSB Sahakari Bank May Step In to Rescue Fraud-Hit New India Co-op Bank

TJSB Sahakari Bank is reportedly exploring the possibility of acquiring the troubled New India Co-operative Bank, which has been reeling under the impact of a major fraud. Sources indicate that the move is in its early stages, with due diligence currently underway.

New India Co-op Bank, which has faced significant financial stress due to alleged fraudulent transactions, has been under scrutiny by the Reserve Bank of India (RBI). To protect depositors and maintain financial stability, the RBI has imposed restrictions on the bank under the Banking Regulation Act.

If the merger materializes, it could offer a lifeline to the beleaguered bank and its depositors, while expanding TJSB's presence and customer base. TJSB, a well-established multi-state cooperative bank with a strong financial foundation, may help restore confidence in the cooperative banking sector if it successfully revives New India Co-op Bank.

RBI Cancels Licence of HCBL Co-op Bank Over Capital and Earnings Deficiencies