New India Cooperative Bank Limited

New India Cooperative Bank Limited, commonly known as NICB, is an urban cooperative bank headquartered in Mumbai, India. The institution was incorporated on 6 December 1967 and began operating with the stated aim of extending banking services to underserved communities, workers, and small businesses. Its origins are associated with socialist leader and former Indian Defence Minister George Fernandes, whose support helped the founders establish a cooperative financial institution inspired in part by the German Labour Bank model. The bank was initially established as Bombay Labour Cooperative Bank Ltd. Its early headquarters were reportedly located at the residence of Ranjit Bhanu, a criminal lawyer, trade unionist, former legislator, and co-founder, in the Bazargate area of Mumbai's Fort district. The institution started with 555 members and initial share capital of ₹1 lakh. Following the period of the Emergency in India, it adopted the name New India Cooperative Bank in 1977. NICB provides conventional banking services, including deposit accounts and lending products for individuals, households, and small enterprises. Its loan portfolio has included home loans, personal loans, and small-business finance. The bank has primarily operated through a branch network in Maharashtra and Gujarat rather than as a nationwide commercial bank. As of March 2024, it operated 30 branches, held deposits of approximately ₹2,436.37 crore, and served more than 130,000 depositors. The institution's recent financial performance has been difficult. It reported a net profit of ₹5.17 crore in the 2019–20 financial year, followed by a net loss of ₹6.14 crore in 2020–21. Losses widened to ₹30.74 crore in 2022–23 before narrowing to approximately ₹22.77 crore in 2023–24. During the year ended 31 March 2024, advances fell by ₹155.04 crore, or 11.66%, to ₹1,174.84 crore, while deposits increased by 1.26% to ₹2,436.37 crore. The bank also reported a gross non-performing asset ratio of 7.96%, a net NPA ratio of 5.43%, and a CRAR of 9.06%, below the then-applicable Reserve Bank of India requirement cited in the reference material. The bank attempted to improve its financial position through cost controls, including branch mergers and relocations, and reported proceeds of ₹31.23 crore from selling three properties. These measures occurred against a broader backdrop of elevated credit stress and regulatory concern. In February 2025, the Reserve Bank of India placed the bank under major regulatory scrutiny after an inspection identified discrepancies between recorded and actual cash holdings. The reported shortfall consisted of ₹112 crore at the Prabhadevi branch and ₹10 crore at the Goregaon branch. The RBI imposed restrictions affecting withdrawals, superseded the bank's board for a stated period of 12 months, and appointed Shreekant, a former State Bank of India chief general manager, as administrator. A committee of advisers, including former SBI general manager Ravindra Sapra and a chartered accountant, was appointed to assist the administrator. Mumbai Police's Economic Offences Wing investigated an alleged ₹122 crore misappropriation involving former bank officials and an outside real-estate developer. Several arrests were reported, including those of former general manager and head of accounts Hitesh Mehta, developer Dharmesh Paun, and former chief executive Abhimanyu Bhoan. The case also involved allegations concerning former chairman Hiren Bhanu and former vice-chairperson Gauri Bhanu. These matters remain allegations and should not be treated as established findings unless determined by a court or final regulatory proceeding. NICB had also faced earlier regulatory penalties. The RBI imposed a ₹25 lakh penalty in August 2021 for non-compliance with fraud-monitoring and reporting requirements, based on an inspection of the bank's position as of March 2019. In January 2024, the RBI imposed a further ₹15 lakh penalty concerning compliance with rules governing donations and contributions from the profits of urban cooperative banks. The bank's current operating status and longer-term resolution remain unclear from the supplied material.

New India Cooperative Bank emerged from India's post-independence cooperative banking movement and was incorporated on 6 December 1967. Its establishment was associated with socialist leader George Fernandes and a group of cooperative banking supporters who wanted to create an institution oriented toward workers, underserved customers, and small businesses. The founders drew inspiration from the German Labour Bank concept, which combined services for employees with financing for enterprises. The bank's original name was Bombay Labour Cooperative Bank Ltd. Ranjit Bhanu, a criminal lawyer, trade unionist, former legislator, and co-founder, provided an early base for the institution at his residence in Mumbai's Fort area. The bank commenced operations with 555 members and initial share capital of ₹1 lakh. Its name changed to New India Cooperative Bank in 1977, after the Emergency period. The renamed institution developed as a Mumbai-centered urban cooperative bank, later extending its branch presence into Maharashtra and Gujarat. Its business has centered on deposits and lending rather than specialized investment banking. Products have included home loans, personal loans, and financing for small businesses, alongside standard retail and cooperative banking services. By March 2024, the bank had 30 branches across Maharashtra and Gujarat, more than 130,000 depositors, and deposits of approximately ₹2,436.37 crore. Its advances were ₹1,174.84 crore after declining by ₹155.04 crore, or 11.66%, during the year. The bank reported a gross NPA ratio of 7.96%, a net NPA ratio of 5.43%, and CRAR of 9.06%. Financial results deteriorated after a reported net profit of ₹5.17 crore in 2019–20. The bank recorded a net loss of ₹6.14 crore in 2020–21 and losses of ₹30.74 crore in 2022–23. For 2023–24, the loss narrowed to approximately ₹22.77 crore. Management also pursued cost reduction through branch mergers and relocations and raised ₹31.23 crore by selling three properties. These actions were intended to support the bank's finances but did not remove its capital, asset-quality, and governance concerns. The bank had already attracted regulatory action before the 2025 crisis. In August 2021, the RBI imposed a ₹25 lakh penalty for shortcomings in fraud monitoring and reporting, based on an inspection of the bank's position as of March 2019. In January 2024, the RBI imposed another ₹15 lakh penalty relating to rules on donations and contributions from urban cooperative bank profits. A much more serious episode began in February 2025. An RBI inspection on 12 February reportedly found discrepancies in cash records, including ₹112 crore missing from the Prabhadevi branch safe and ₹10 crore missing from the Goregaon branch safe. The RBI responded with withdrawal restrictions and superseded the bank's board for 12 months. Shreekant, a former State Bank of India chief general manager, was appointed administrator, supported by an advisory committee that included former SBI general manager Ravindra Sapra and a chartered accountant. The Mumbai Police Economic Offences Wing investigated an alleged ₹122 crore misappropriation. Former general manager and head of accounts Hitesh Mehta was arrested, as was real-estate developer Dharmesh Paun, who was alleged to have helped divert funds. Former CEO Abhimanyu Bhoan was arrested on 20 February 2025, and reports later stated that seven people had been arrested by 18 March. Investigators also alleged involvement by former chairman Hiren Bhanu and former vice-chairperson Gauri Bhanu; property seizures and an international search process were reported in relation to the former chairman. The allegations, arrests, and seizures are reported investigative developments and do not by themselves establish criminal liability. The supplied material does not establish whether the bank has returned to ordinary operations, undergone a merger, been liquidated, or received a final resolution. Its present status should therefore be treated as unknown pending authoritative regulatory or institutional updates.

• 2025

  Regulatory administration and alleged fraud investigation

  [1]New India Cooperative Banken.wikipedia.org

  The RBI imposed restrictions, superseded the board, and appointed an administrator after reported cash discrepancies; police investigated an alleged ₹122 crore misappropriation.

• 2024

  Further RBI penalty

  [1]New India Cooperative Banken.wikipedia.org

  The RBI imposed a ₹15 lakh penalty concerning donations and contributions rules.

• 2021

  RBI compliance penalty

  [1]New India Cooperative Banken.wikipedia.org

  The RBI imposed a ₹25 lakh penalty concerning fraud-monitoring and reporting compliance.

• 1977

  Name change

  [1]New India Cooperative Banken.wikipedia.org

  The bank adopted the name New India Cooperative Bank after the Emergency period.

• 1968

  Commencement of banking operations

  [1]New India Cooperative Banken.wikipedia.org

  The bank began operations with 555 members and initial share capital of ₹1 lakh.

• 1967

  Incorporation

  [1]New India Cooperative Banken.wikipedia.org

  The institution was incorporated on 6 December 1967 as Bombay Labour Cooperative Bank Ltd.

A locally focused urban cooperative bank built around member-oriented banking, retail deposits, household lending, and support for small businesses and underserved communities in western India.

• Retail lending

  Home loans

  Mortgage-style financing for residential housing and related personal property needs. The supplied material identifies home loans as one of the bank's principal retail lending services, although it does not provide detailed eligibility, pricing, tenure, or current availability information.

• Retail lending

  Personal loans

  Consumer credit intended for personal expenditure. Personal loans formed part of the bank's general retail offering, but the available references do not specify product variants, limits, rates, or whether new applications remain available under the 2025 restrictions.

• Business lending

  Small-business loans

  Credit facilities for small enterprises and local businesses, consistent with the bank's original cooperative mission of serving both workers and businesses. Detailed sector coverage, underwriting criteria, and current lending terms are not provided in the supplied material.

• Deposits

  Deposit accounts

  Retail and member-oriented deposit services supporting the bank's cooperative funding model. Deposits were approximately ₹2,436.37 crore as of 31 March 2024, but the references do not enumerate specific account types or current withdrawal conditions.

• 2025

  Alleged ₹122 crore misappropriation and cash shortfall

  An RBI inspection reportedly found ₹112 crore missing from the Prabhadevi branch safe and ₹10 crore from the Goregaon branch safe. The matter led to withdrawal restrictions, board supersession, appointment of an administrator, and a Mumbai Police Economic Offences Wing investigation. Multiple arrests and property seizures were reported. The allegations remained subject to investigation and legal process.

  Source

• 2024

  RBI penalty concerning donations and contributions

  The RBI imposed a ₹15 lakh penalty related to non-compliance with rules governing donations and contributions by urban cooperative banks.

  Source

• 2021

  RBI penalty for fraud-monitoring deficiencies

  The RBI imposed a ₹25 lakh penalty for non-compliance with fraud-monitoring and reporting guidelines identified during an inspection covering March 2019.

  Source

Read more

• 2025

  RBI imposes restrictions and appoints an administratorOther

  Background

  The RBI acted after an inspection identified discrepancies in recorded cash holdings and broader financial and operational concerns.

  Action taken

  The regulator restricted withdrawals, superseded the bank's board for 12 months, appointed Shreekant as administrator, and established an advisory committee.

  Aftermath

  The bank entered a period of direct regulatory administration while the alleged cash diversion was investigated. The supplied material does not establish the final resolution.

  Source

• 2024

  Cost reduction and property salesStrategy

  Background

  The bank faced losses, elevated non-performing assets, and a CRAR below the cited regulatory requirement.

  Action taken

  The bank merged and relocated branches and generated ₹31.23 crore through the sale of three properties.

  Aftermath

  Losses narrowed from ₹30.74 crore in 2022–23 to approximately ₹22.77 crore in 2023–24, although the bank continued to report a loss.

  Net loss. ₹30.74 crore → ₹22.77 crore (Financial years 2022–23 and 2023–24)

  Source

1. 1New India Cooperative Banken.wikipedia.org
2. 2New India Cooperative Bank official websitenewindiabank.in