New India Cooperative Bank Limited (also known as NICB) is a Mumbai-based cooperative bank,[2] which was incorporated on 6 December 1967.[3] It provides a range of financial services, including home, personal, and small business loans.[4] As of March 2024, the bank operated 30 branches across Maharashtra and Gujarat, managing deposits of ₹2,436 crore[1] and serving over 130,000 depositors.[5] The bank reported losses of ₹22.78 crore in 2023–24 and ₹30.74 crore in 2022–23.[1]
 | |
| Formerly | Bombay Labour Cooperative Bank Ltd. |
|---|---|
| Company type | Cooperative bank |
| Industry | Banking, Financial services |
| Founded | 6 December 1967 in Mumbai, India |
| Founder | George Fernandes Ranjit Bhanu |
| Headquarters | Mumbai, Maharashtra , India |
Number of locations | 30 branches (2024) |
Area served | Maharashtra, Gujarat |
Key people | Shreekant (Administrator) |
| Products | Loans, banking services |
| Services | Retail banking, loans (home, personal, small business) |
 ₹22.77 crore loss (2023–24)[1] (2024) | |
| Capital ratio | 9.06% (CRAR, 2024) |
| Website | https://www.newindiabank.in/ |
Since February 2025, the bank has been under scrutiny by the Reserve Bank of India over an alleged ₹122 crore scam.[6][1]
History
edit.jpg)
New India Cooperative Bank was established in 1968 with the support of socialist leader and former Defence Minister George Fernandes.[7] The bank was founded with the objective of providing financial services to underserved communities and promoting cooperative banking in India.[5][8][9]
The bank was initially headquartered at the residence of Ranjit Bhanu, a criminal lawyer, trade unionist, former MLA, and co-founder,[7] at Bazargate in Fort. It commenced operations with 555 members who had contributing an initial share capital of ₹1 lakh.[10]
It was then known as the Bombay Labour Cooperative Bank Ltd.[7] It was renamed New India Cooperative Bank in 1977 after the Emergency.[11] The bank's founders took inspiration from the German Labour Bank model, which provided services to both workers and businesses.[7]
On 14 February 2025, the Reserve Bank of India appointed Shreekant, former Chief General Manager of State Bank of India, as the Administrator of the bank. A Committee of Advisors, including Ravindra Sapra (former General Manager, SBI) and a chartered accountant, was also appointed to assist in managing the bank.[12]
Finance
editAs of 31 March 2024, New India Cooperative Bank reduced its losses to ₹22.77 crore from ₹30.74 crore in the previous year. The bank's advances portfolio declined by ₹155.04 crore (11.66%) to ₹1,174.84 crore, while deposits increased by 1.26% to ₹2,436.37 crore.[13]
The Capital to Risk-Weighted Assets Ratio (CRAR) stood at 9.06%, below the RBI's required 10%. The bank undertook cost-cutting measures, including branch mergers and relocations, and generated ₹31.23 crore from the sale of three properties. As of March 2024, the bank’s gross NPA was 7.96%, and net NPA was 5.43%.[13]
In the 2020-21 financial year, the bank recorded a net loss of ₹6.14 crore. In 2019-20, the bank had reported a net profit of ₹5.17 crore.[14]
Alleged financial irregularities
editIn February 2025, the Economic Offences Wing of the Mumbai Police arrested Hitesh Mehta, former general manager and head of accounts at New India Cooperative Bank, for allegedly misappropriating ₹122 crore from the bank's cash reserves. Dharmesh Paun, a real estate developer, was also arrested for allegedly facilitating the diversion of funds.[15][1]
An inspection by the Reserve Bank of India on 12 February 2025, identified discrepancies in the bank's cash records, revealing ₹112 crore missing from the Prabhadevi branch safe and ₹10 crore from the Goregaon branch safe. Following this, the RBI imposed withdrawal restrictions on the bank.[16] It has been allege that the misappropriation took place over six years, between 2019 and 2025.[1]
The Reserve Bank of India also superseded the board of New India Cooperative Bank for 12 months following financial and operational restrictions related to irregular lending practices.[17]
The Economic Offences Wing of Mumbai Police arrested former New India Cooperative Bank CEO Abhimanyu Bhoan on 20 February 2025 in connection with the ₹122 crore scam, making it the third arrest in the case.[18]
As of 18 March 2025, a total of seven arrests have been made in connection with the case.[19]
In March 2025, the Economic Offences Wing seized properties worth ₹28 crore belonging to Hiren Bhanu, former Chairman of the bank, son of co-founder Ranjit Bhanu[20] and an alleged mastermind of the ₹122 crore scam, under Section 106 of BNS. Hiren Bhanu and his wife, Gauri Bhanu, former Vice Chairperson of the bank, have fled abroad, and a Blue Corner notice has been issued for their extradition.[21][22]
Penalties
editIn August 2021, the Reserve Bank of India had imposed a ₹25 lakh penalty on the bank for non-compliance with fraud monitoring and reporting guidelines, based on statutory inspections of its financial position as of March 2019.[23] In January 2024, a ₹15 lakh penalty was imposed on New India Cooperative Bank by RBI for non-compliance with guidelines on donations and contributions from urban cooperative banks' profits.[24]
See also
edit
References
edit- ^ a b c d e f Yadav, Vijay Kumar (18 February 2025). "New India Cooperative Bank scam: Ex-GM was giving depositor's money to traders as unsecured loans during Covid". Indian Express.
- ^ "New India Co-op Bank gets shareholders' nod to become an SFB". The Hindu Business Line. 20 January 2020.
- ^ "53rd Annual Report 2019-2020" (PDF). newindiabank.in.
- ^ "New India Co-operative Bank Ltd". Bloomberg. 20 February 2025.
- ^ a b Dalvi, Vinay (20 February 2025). "New India bank customers mull long road ahead, file complaint". Hindustan Times.
- ^ "India's RBI imposes business curbs at New India Co-operative Bank on supervisory concerns". Reuters . 13 February 2025.
- ^ a b c d Bose, Mrityunjay (15 February 2025). "Bank founded by ex-minister George Fernandes faces crisis". Deccan Herald.
- ^ "New India Cooperative Bank: twenty years of growth and service". The OtherSide (72–83). Ravi Nair for Pratipaksh Prakashan: 6. 1988.
- ^ "India Today". India Today (11). Living Media India: 61. 1986.
- ^ Kulkarni, Dhaval; Mukherjee, Ashish (28 February 2025). "How New India Cooperative Bank's better days had a George Fernandes link". India Today.
- ^ Gupta, Rohit (31 October 2018). "New India Co-op Bank: Financial parameters shrink, not the spirit". Indian Cooperative.
- ^ "RBI supersedes New India Co-operative Bank Board for 12 months, appoints administrator". The Financial Express. 14 February 2025.
- ^ a b Gupta, Rohit (3 October 2024). "New India Co-op Bank cuts losses; hopeful of turnaround". Indian Cooperative.
- ^ Gupta, Rohit (23 November 2021). "New India Co-op Bank suffers loss, fails to give dividends". Indian Cooperative.
- ^ Pathak, Manish Kumar (17 February 2025). "New India bank scam: Realtor who got ₹70 crore from loot arrested". Hindustan Times.
- ^ Mishra, Ayush (19 February 2025). "RBI halts New India Co-op Bank operations: How to secure your savings". Business Standard.
- ^ Prasad, Nikita (15 February 2025). "New India Co-operative Bank fraud case: How will the RBI crackdown impact account holders, depositors?". Livemint.
- ^ Rajput, Sagar (21 February 2025). "Former CEO of New India Coop Bank arrested in Rs 122-cr scam". Indian Express.
- ^ "Businessman held in New India Bank scam; seventh arrest so far". The Economic Times. 18 March 2025.
- ^ Dalvi, Vinay (1 March 2025). "New India Co-op Bank fraud: Ex-chairperson Hiren Bhanu named as accused, one more arrest". Hindustan Times.
- ^ Apraj, Poonam (19 March 2025). "₹122 Crore New India Co-op Bank Scam: EOW Seizes ₹28 Crore Properties Of Bhanu Couple". The Free Press Journal.
- ^ "New India Coop Bank: EOW searches ex-chairman's home in Rs 122 cr fraud". Business Standard. 5 March 2025.
- ^ "RBI imposes monetary penalty on New India Co-operative Bank, Jalgaon People's Co-operative Bank". Moneycontrol.com. 27 August 2021.
- ^ "RBI imposes monetary penalty on five cooperative banks". Moneycontrol.com. 18 January 2021.
  | This article about an Indian company is a stub. You can help Wikipedia by expanding it. |
 | This Asian bank-related article is a stub. You can help Wikipedia by expanding it. |