RBI mulls merger plans of 14 urban co-ops bank

Mumbai | Updated: Dec 30 2008, 05:44am hrs
The Reserve Bank is considering requests for mergers of 14 more urban cooperative banks, the apex bank has said. RBI has been encouraging consolidation in the urban cooperative banking sector and has so far allowed merger and acquisition in case of 68 banks. In a data released on the subject, the apex bank said since issuance of guidelines on mergers of urban cooperative banks in February 2005, it had received 107 proposals for mergers in respect of 92 banks. Twenty proposals for merger were rejected, five proposals were withdrawn by banks and the remaining 14 are under consideration, the bank said.