Regional Rural Banks (Grameena Banks) have become much stronger

Media Release
Bellevision Media Network

Bangalore: With a vision for inclusive growth, the Central Government established Regional Rural Banks (Grameena Banks) in 1975. At the same time,196 RRBs were functioning across the country, including 13 in Karnataka. To further strengthen these institutions, the Government initiated the first phase of amalgamation in 2005 and empower Grameena Banks. 

 

As a result of this and subsequent mergers, the number of RRBs in the country has now reduced to 43 with only two remaining in Karnataka. Karnataka Vikas Grameena Bank (KVGB), head quartered in Dharwad, had a business turnover of Rs.38,714 Crore with 629 branches across 9 districts. Karnataka Gramin Bank (KGB), head quartered in Bellari, had a turnover of Rs.66,137 Crore with 1122 branches across 22 districts. 

 

Now, as per the notification issued by the Central Government in line with its “One state, One RRB” policy, the two banks will amalgamated to form a unified Karnataka Grameena Bank, effective from May 1st. The new Bank will have its Head Office at Ballari.

The newly formed Karnataka Grameena Bank will continue to be Government Owned, with the Central Government holding 50%, the State Government 15% and Canra Bank (Sponsor Bank) 35%.The Bank’s services will now be extended across the entire State of Karnataka, making it the second largest Regional Rural Bank in the country with a business turnover of Rs.1,04,851 crore and 1,751 Branches. 

 

The newly formed Karnataka Grameena  Bank will be led by Mr. Sreekant  M. Bhandiwad, the current Chairman of the erstwhile Karnataka Vikas Grameena Bank. A seasoned banker with a Master’s degree in Agriculture and over 31 years of experience in the banking sector.

 

Speaking on the occasion, Mr. Bhandiwad stated that the two amalgamated Grameena banks have played a pivotal role specially in channelizing   institutional credit to the rural economy. He affirmed that the newly formed Karnataka Grameena Bank will carry forward this proud legacy with renewed strength, greater security, and enhanced confidence.

 

Mr. Bhandiwad also called for the continued co-operation of customers and the general public, emphasizing that as the largest government-owned rural bank, the new entity is committed to delivering even better and more efficient services to its vast customer base.