Indian Overseas Bank (IOB) plans to merge two regional rural banks (RRBs) belonging to Bank of India and UCO Bank with its own Neelanchal Grammiya Bank.
After the amalgamation, the bank will float a new entity called Odisha Grammia Bank, effective November 30, 2012.
The bank's Chairman and Managing Director, M Narendra confirmed that Bank of India's RRB, Baitarani Grammiya Bank and UCO's Kalinga Grammiya will be merged with IOB's Neelanchal Grammia Bank, adding that the networth of both Gramin banks were positive and that IOB's RRB was a profit-making one.
"This (the merger) is per as the directive of the Ministry which has been looking at RRBs performance" said A D M Chavali, executive director, Indian Overseas Bank.
All the three RRBs put together will have a book size of around Rs 10,000 crore with 480 branches across 15 districts in the state of Odisha and it will be a single entity called Odisha Grammia Bank, said Narendra.