Ministry of Finance to merge two regional rural banks in Tamil Nadu

The Ministry of Finance has decided to merge two regional rural banks and name the new entity as Tamil Nadu Grama Bank.

The banks include Pallavan Grama Bank (Sponsored by Indian Bank) and Pandyan Grama Bank (Sponsored by Indian Overseas Bank). 

The new entity, namely Tamil Nadu Grama Bank, will be under the sponsorship of Indian Bank, with its head office in Salem. The merger would be effective from  April 1, 2019.

In recognition of its strong financials, predominant presence in the state and preference among a larger section of populace in Tamil Nadu, Indian Bank is entrusted with the coveted responsibility of being the sponsor bank for the merged regional rural bank, which will have its presence in 32 out of 33 districts of Tamil Nadu (except Chennai) through its branches and field business correspondents, said the Indian Bank.

Tamil Nadu Grama Bank reported around Rs 21,000 crore of business with 625 branches and 800 business correspondent outlets spread over the entire length and breadth of the state.