The exercise is will be completed by end of June. Confirming the development, Manjayya C Shetty, managing director, Abhyudaya said:We have already got an approval from central registrar and the Reserve Bank of India to acquire Udipi-based Janta Co-operative Bank and Baroda based Shree Krishna Co-operative Bank. We are now awaiting the consent from respective states registrars to complete the acquisition process."
The proposed acquisition in the states of Gujarat and Karnataka is expected to increase the bank's branch network to 72 from 53 presently.
As for the Ahmedabad-based Manekchowk Co-operative Bank, Shetty said the proposal has already been submitted to the RBI. Once the RBI nod is granted the bank's acquisition processes would be completed over the next two months or so, he said.
The proposed acquisitions will cost the bank around Rs 20 crore. We will pay Rs 15 crore to acquire 11 branches of Manekchowk Co-operative Bank, Rs 2.5 crore for the single-branch Shree Krishna Co-operative Bank and Rs 1.5 crore for the six branches of Janta Co-operative Bank, said
Apart from acquiring the three banks, the bank is also expanding its branch network through aditional branches, the bank's chairman, Sandeep S Ghandat said. We intend to open five more branches in Maharashtra. For which, we have got the regulatory approval last week, he said.
As on March 31, 2007, the net profit of the bank was Rs 38 crore, while the deposit base was Rs 2,600 crore and the advances were Rs 1,600 crore.