Panel moots merger of UP co-op banks to create ~35K-crore entity

Amid the ongoing consolidation in the domestic public sector banking space, an expert panel has suggested creating a single state-controlled lender in Uttar Pradesh by merging all the cooperative banks in the state.

The proposed merged UP Cooperative Bank will comprise more than 1,000 branches with a balance sheet of nearly ~35,000 crore.

It could even grow to more than ~50,000 crore in the next five years with a moderate growth rate of 8 per cent.

Earlier, the Yogi Adityanath government had formed an expert committee to make recommendations in this regard. “Our report has been submitted to the state government for taking a final call on the proposed merger of state cooperative banks,” a member of the panel told Business Standard on condition of anonymity.

The Covid-19 lockdown had inadvertently delayed the whole process, he said.

The proposal is to merge UP Cooperative Bank (UPCB), UP Sahkari Gram Vikas Bank (UPSGVB) and the 50 district cooperative banks (DCBS).