The RBI has granted approval for the merger of National Co-operative Bank with Cosmos Co-operative Bank.

Banking & Finance | Dated: 07 Jan 2025

On January 3, 2025, the Reserve Bank of India (RBI) approved the merger of National Co-operative Bank Limited, Bengaluru (Karnataka) with Cosmos Co-operative Bank Limited, Pune (Maharashtra), effective from January 6, 2025.

🎯 Key Highlights:

  • - The RBI sanctioned the Scheme of Amalgamation of the banks in exercise of the powers conferred under Sub-Section(4) of Section 44A with Section 56 of the Banking Regulation Act, 1949.

💡 Other Important Facts:

  • (i) The RBI also granted approval to Housing Development Finance Corporation (HDFC) Bank Limited to acquire up to a 9.5% stake in AU Small Finance Bank Limited, Kotak Mahindra Bank Limited (KMBL), and Capital Small Finance Bank Limited.
  • (ii) The approval is valid for a 1-year period, expiring on January 2, 2026.
  • (iii) This approval also covers HDFC Bank's group companies, including HDFC Mutual Fund (MF), HDFC Life Insurance, HDFC ERGO General Insurance, HDFC Securities, and HDFC Pension Management.

📚 Test Your Knowledge:

Which institution approved the merger of National Co-operative Bank and Cosmos Co-operative Bank?

Correct Answer: RBI

🚀 Quick Recap:

About AU Small Finance Bank

  • MD & CEO : Sanjay Agarwal
  • Headquarters: Jaipur