Indian Overseas Bank (IOB) will merge two of its regional rural banks (RRBs) belonging to Bank of India (BoI) and UCO Banks with IOB’s Neelanchal Grammiya Bank.
After the amalgamation, the bank will float a new entity called Odisha Grammia Bank. This will be in effect from November 30, 2012.
Bank’s chairman and managing director M Narendra said BoI’s RRB Baitarani Grammiya Bank and UCO’s RRB called Kalinga Grammiya will be merged with IOB's Neelanchal Grammia Bank.
He added, both banks had a networth that is positive and IOB’s RRB is a profit making one.
“This is (the merger) is per as the directive of the Ministry which has been looking at RRBs performance,” said ADM Chavali, executive director, Indian Overseas Bank.
All RRBs put together will have a book size of around Rs 10,000 crore with 480 branches across 15 districts in Odisha and it will be a single entity called Odisha Grammia Bank.
