Mumbai-based urban cooperative bank, Zoroastrian Co-operative Bank Limited (ZCBL) has acquired Surat-based City Co-operative Bank Limited making the former a multi-state scheduled urban cooperative bank.
The ZCBL has been authorised by the statutory authorities to acquire the Surat-based City Co-operative Bank. The acquisition brings six branches of City Cooperative Bank under ZCBL, which currently has 12 branches located in parts of Mumbai and Pune.
Currently, ZCBL has about 45,000 to 50,000 accounts with a total business of Rs 1,100 crore as on March 31, 2012 and its net worth is nearing Rs 100 crore. The bank maintains the Capital Adequacy Ratio (CAR) in excess of 14 per cent, as against the requirement of 9 per cent set by the Reserve Bank of India (RBI).
According to sources, ZCBL has acquired 100 per cent holding of the City Cooperative Bank, along with its cumulative loss of Rs 7.5 crore. "We are confident to turn this loss-making bank into profit making soon. This is the first acquisition by Zoroastrain Cooperative Bank and it is likely to boost our operations and business outside Maharashtra," said an official of ZCBL.
"Surat has significant Parsi population, which will help us achieve increased business, although about 80 per cent of our total customers are non-Parsi," added the official.
ZCBL is equipped with core banking solution and other technology driven products like RTGS, NEFT, EFT, ECS and SMS banking.
The acquisition would help the Mumbai-based bank to expand its area of operations which was so far confined to Greater Mumbai, municipal limits of Pune city, Thane district and municipal areas of Navi Mumbai in Maharashtra to the whole of Surat district and including the municipal corporation areas of Surat, Bharuch, Baroda, Anand, Nadiad, Ahmedabad, Navsari and Valsad in the State of Gujarat, a ZCBL statement informed.