Syndicate Bank to merge four RRBs

The Syndicate Bank will merge four regional rural banks sponsored by it in Karnataka.

Bank's executive director Prakash Malya said on Thursday, the banks will be merged into the Karnataka Vikasa Grameena Bank. Malya added, the government had approved the merger.

Malaprabha Grameena Bank covering Dharwad, Gadag, Haveri and Belgaum, Bijapur Grameena Bank covering Bijapur and Bagalkot, Varada Grameena Bank covering Uttara Kannada and Netravati Grameena Bank catering to Dakshina Kannada will be merged into Karnataka Vikasa Grameena Bank, which will have its head office at Dharwad.

Speaking on the performance of Syndicate Bank, Malya said the Bank was in the pink of its health and there was no proposal to merge it with any other bank. The bank is aiming at reaching a business level of Rs 1 lakh crore by end of March 2007. It has 1,810 branches as of now and the number of branches will go up to 2,000 by the end March 2007.

Thirty per cent of the new branches will be opened in Karnataka. Malya claimed that Syndicate Bank was the first to introduce a core banking solution in the country and now there were 254 crore banking solutions in place.

This will go up to 250 by the end March 2006. The number of ATMs will also go up to 500. Malya also said that efforts were on to reduce the NPA to one per cent by March end.