Some of the depositors who had put their money in the South Indian Co-operative Bank (SICB) - now merged with the Saraswat Co-operative Bank (SCB) — would have to sacrifice part of the deposits as part of the merger scheme. Saraswat Bank took over SICB (which has a network of 12 branches and two extension counters) with effect from September 1, 2008 following approvals from the RBI and the Registrar of Co-operative Societies.

According to a circular issued by Saraswat Bank, depositors who had a credit balance up to Rs 1 lakh with SICB would receive 55 per cent from Saraswat Bank and the balance 45 per cent from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

However, customers having deposits of over Rs 1 lakh will have to sacrifice 45 per cent of the amount and get only 55 per cent from the bank. SICB had been under moratorium for four years until Saraswat Bank decided to acquire it this year.

Some depositors of the bank have expressed resentment over the merger terms. “The bank could have given the balance 45 per cent amount on deferred payment instead of total sacrifice as the charitable activities of institutions involved in education, religion, healthcare, etc would suffer. Senior citizens who have deposited their life’s income will be hit most by the new takeover norms,” said K A Viswanathan, a depositor.