SOUTH AND NORTH MALABAR GRAMIN BANKS MERGE " KERALA GRAMIN BANK FORMED " The South Malabar Gramin Bank (SMGB) and the North Malabar Gramin Bank (NMGB), the State’s two regional rural banks sponsored by the Canara Bank and the Syndicate Bank respectively, have been merged to give shape to the Kerala Gramin Bank (KGB). The new bank would be headquartered in Malappuram and would be sponsored by the Canara Bank, said its chairman K.V. Shaji. It would have jurisdiction over the entire State. Mr. Shaji said the amalgamation would result in strengthening of the rural banking in the State with improved outreach. The KGB will have a total net worth of Rs.471.58 crore and 504 branches. Mr. Shaji said that the new bank aimed at opening at least one branch in every panchayat across the State. In effect, the number of KGB branches will be doubled in a year. The deposits of the new bank will be Rs.7,266 crore and advances will be Rs.7761 crore, with a total business of Rs.15,027 crore. The KGB will have a credit-deposit ratio of 107 per cent. Mr. Shaji said the bank would ensure protection of the interest of the depositors and borrowers. Customers of SMGB and NMGB could continue their existing accounts in the new KGB. They could continue to use their existing cheque books until all leaves are exhausted, he said. The chairman, however, requested the customers to get the new bank seal affixed on their unused cheque leaves. He said that there would be no changes in the shareholding pattern of the KGB. The Central government would continue to have 50 per cent stake. The Canara Bank would have 35 per cent stake, and the State government would have 15 per cent stake. Source:The Hindu
Posted on: Sun, 21 Jul 2013 19:02:42 +0000
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