Centre set to clear rural bank mergers

The government is set to clear the proposal of six banks to consolidate their rural regional banks (RRBs).

While the banks have been told to explain to their unions the benefit arising out of mergers of banks, the finance ministry is speeding up the consolidation of the regional rural banks (RRBs).

The proposals have also been cleared by the states concerned.

The State Bank of India's proposal for amalgamation of Gorakhpur Kshetriya Gramin Bank and Basti Gramin Bank into a single RRB has been approved by the UP government.

The new entity to be called Purvanchal Gramin bank will have its headquarters at Gorakhpur in Uttar Pradesh.

Punjab National Bank's (PNB) plan amalgamation of three RRBs - Vidur Gramin Bank, Muzaffarnagar Kshetriya Gramin Bank and Hindon Gramin Bank into a single RRB to be called Vidur Hindon Gramin Bank with its headquarters at Ghaziabad in Uttar Pradesh has been approved.

The Punjab government has also approved the proposal of PNB for amalgamation of three RRBs - Gurdaspur-Amritsar Kshetriya Gramin Vikas Bank, Kapurthala-Ferozpur Kshetriya Gramin Bank and Shivalim Kshetriya Gramin Bank into a single RRB called Punjab Gramin Bank with its headquarters at Kapurthala in Punjab.

Bank of Baroda' proposal for amalgamation of Valsad Dangs Gramin Bank, Surat Bharuch Gramin Bank and Panchmahahal Vadodara Gramin Bank into a single RRB to be called Bank of Baroda Gujarat Gramin bank has also been approved. The consolidated entity will have its headquarters at Bharuch in Gujarat.

Central Bank of India's proposal to merge Akola Kshetriya Gramin Bank, Yavatmal Kshetriya Gramin bank and Buldhana Gramin Bank has also been approved. The consolidated entity to be called Vidharbha Kshetriya Gramin Bank will have its headquarters at Akola in Maharashtra.

Dena Bank's plans to merge Kutch Gramin Bank, Banaskantha Mehsana Gramin Bank and Sabarkantha Gandhinagar Gramin Bank into a single Dena Gujarat Gramin Bank has also been approved.

While the bank are sensitising the unions regarding the benefits of mergers the government is ensuring that in the meantime the consolidation of the RRBs is tackled.