Karnataka Gramin Bank
| Karnataka Gramin Bank | |
| Company type | Regional rural bank |
| Industry | Banking |
| Predecessor | Pragathi Krishna Gramin Bank, Kaveri Gramin Bank |
| Founded | 4 January 2019 (7 years ago) (2019年01月04日) |
| Defunct | 30 April 2025; 8 months ago (2025年04月30日) |
| Fate | Merged with Karnataka Vikas Grameena Bank to form Karnataka Grameena Bank |
| Successor | Karnataka Grameena Bank |
| Headquarters | Ballari, Karnataka , |
Key people | Shrikant M Bhandiwad (Chairman)[1] |
| Products | |
| Services |
|
| ₹ 4,400 crore (US520ドル million) (2023–2024) | |
| ₹ 700 crore (US83ドル million) | |
Number of employees | 3600 |
| Parent |
|
Karnataka Gramin Bank was an Indian Regional Rural Bank (RRB) headquartered in Ballari, Karnataka.[2] It was established on 4 January 2019 through the amalgamation of two Regional Rural Banks sponsored by Canara Bank, as approved by the Ministry of Finance.[3] The bank operated under the regulatory framework of the Regional Rural Banks Act, 1976.[4] It functioned as a scheduled commercial bank serving rural and semi-urban areas across various districts of Karnataka.[5] [6]
History
[edit ]The Ministry of Finance announced the amalgamation through Gazette Notification CG-DL-E-07042025-262329 dated 5 April 2025.[7] Karnataka Gramin Bank (formerly Pragathi Krishna Gramin Bank) and Karnataka Vikas Grameena Bank merged effective 1 May 2025.[8] [9] [10] [11]
The consolidation was implemented as part of the Government of India's "One State-One RRB" policy designed to improve operational efficiency.[12] [13] [14] Shreekant Bhandiwad, who previously served as Chairman of Karnataka Vikas Grameena Bank, was appointed as the inaugural Chairman of the merged institution.[15] This consolidation represents part of the broader governmental strategy to enhance Regional Rural Bank operational effectiveness through systematic amalgamation.
Merger and formation
[edit ]Pragathi Krishna Gramin Bank was formed in 2013 through the merger of Pragathi Gramin Bank and Krishna Grameena Bank.[16] Karnataka Vikas Grameena Bank was constituted in 2005 after amalgamating four Regional Rural Banks under recommendations of banking sector reforms.[17] Regional Rural Banks have evolved significantly since their inception in 1975, with consolidation becoming a key strategy for improving operational efficiency and financial viability.[18] As of March 2024, there are 43 Regional Rural Banks operating across India, sponsored by 12 scheduled commercial banks.[19] The government's consolidation strategy aims to merge these 43 banks into 28 entities for improved operational efficiency.[20]
Operations
[edit ]Karnataka Gramin Bank maintains its headquarters in Ballari, Karnataka, and adheres to the standard Regional Rural Bank ownership structure involving the Government of India, Canara Bank, and the Karnataka state government as stakeholders. Regional Rural Banks operate under dual supervision from the Reserve Bank of India pursuant to the Banking Regulation Act, 1949, and the National Bank for Agriculture and Rural Development under Section 35(6) of the same legislation.[5] The institution provides comprehensive banking services encompassing deposit products, lending facilities, and payment systems. Karnataka Gramin Bank concentrates on delivering credit and banking facilities to small and marginal farmers, agricultural laborers, artisans, and small entrepreneurs in rural areas.[4]
Branches and digitalization
[edit ]Karnataka Gramin Bank operates mobile banking applications including "KaGB Connect" and "DiGi KaGB" for instant account opening through selfie-based verification technology. The institution has implemented mobile ATM services to promote digitization initiatives in rural areas.[21] The bank's technology infrastructure encompasses 1,167 branches, with Wipro Limited providing comprehensive technology solutions including core banking systems to enhance digital banking capabilities.[22] [23] Lending operations are conducted in accordance with Regional Rural Bank mandates, focusing on agriculture, rural development, and micro-enterprise financing.
Performance
[edit ]Regional Rural Banks collectively operate 22,069 branches across India as of March 2024, serving over 31.3 crore deposit accounts and 3 crore loan accounts.[19] Regional Rural Banks in South India have demonstrated significant performance variations, with comparative studies highlighting the importance of operational efficiency and consolidation strategies.[24]
Karnataka Gramin Bank recorded a net profit of ₹14 crore in fiscal year 2020-21 and achieved a total business of ₹57,210 crore in fiscal year 2021-22.[25] [26] The bank's total business grew to ₹61,203 crore in fiscal year 2022-23, demonstrating consistent growth in its operations.[27]
Bank growth
[edit ]Karnataka Gramin Bank's 2022-23 business growth of 7% exceeded the national Regional Rural Bank average of 5.2%.[19] The Government of India allocated ₹10,890 crore in recapitalisation assistance to Regional Rural Banks during fiscal years 2022 and 2023, intended to strengthen capital adequacy and operational capacity across the sector.[19] Contemporary rural banking trends indicate increasing emphasis on digital transformation and financial inclusion initiatives across India's Regional Rural Bank network.[28]
References
[edit ]- ^ "Board of Directors". Karnataka Gramin Bank. Archived from the original on 22 July 2025. Retrieved 22 July 2025.
- ^ "List of Regional Rural Banks functioning in the country". Department of Financial Services, Ministry of Finance, Government of India. Retrieved 2025年07月21日.
- ^ "Centre merges Karnataka Gramin Bank and Karnataka Vikas Grameena Bank". The Economic Times. Retrieved 2025年07月21日.
- ^ a b "Regional Rural Banks". Department of Financial Services, Ministry of Finance, Government of India. Retrieved 2025年07月21日.
- ^ a b "Regional Rural Banks". Reserve Bank of India. Retrieved 2025年07月21日.
- ^ "List of banks in India". Reserve Bank of India. Retrieved 2025年07月21日.
- ^ "Gazette Notification of KAGB-KVGB" (PDF). Ministry of Finance, Government of India. Retrieved 2025年07月21日.
- ^ "Unified Karnataka Grameena Bank to come into existence on May 1". The Hindu. Retrieved 2025年07月21日.
- ^ "Centre amalgamates two RRBs in Karnataka". The Hindu Business Line. Retrieved 2025年07月21日.
- ^ "Karnataka to have one regional rural bank after Centre enforces merger". Deccan Herald. Retrieved 2025年07月21日.
- ^ "New Bank Dharwad". Prajavani. Retrieved 2025年07月21日.
- ^ "Annual Report 2023-24" (PDF). Department of Financial Services, Ministry of Finance, Government of India. Retrieved 2025年07月21日.
- ^ "One State One RRB: Central government to merge 43 banks including 2 banks in Karnataka". Vijaya Karnataka. Retrieved 2025年07月21日.
- ^ "Branch Expansion Guidelines for Regional Rural Banks". Reserve Bank of India. Retrieved 2025年07月21日.
- ^ "Karnataka Vikas Grameena Bank". Karnataka Vikas Grameena Bank. Retrieved 2025年07月21日.
- ^ "Master Circular on Regional Rural Banks". Reserve Bank of India. Retrieved 2025年07月21日.
- ^ "Rural Banks Merger". Prajavani. Retrieved 2025年07月21日.
- ^ "Regional Rural Banks: Performance and Challenges" (PDF). LBP Research. Retrieved 2025年07月21日.
- ^ a b c d "Empowering Rural Financial Institutions". NABARD Annual Report. Retrieved 2025年07月21日.
- ^ "The Journey of Regional Rural Banks in India: Evolution Towards Consolidation" (PDF). ELP Law. Retrieved 2025年07月21日.
- ^ "Karnataka Gramin Bank initiates mobile ATMs to push digitisation in rural areas". ANI News. Retrieved 2025年07月21日.
- ^ "Wipro to tech-ready 1,167 branches of Karnataka Gramin Bank". The Hindu. Retrieved 2025年07月21日.
- ^ "Wipro deploys core banking solutions platform for Karnataka Grameena Bank". Business Standard. Retrieved 2025年07月21日.
- ^ "Comparative Study on Selected Regional Rural Banks of South India" . Retrieved 2025年07月21日.
- ^ "Karnataka Gramin Bank records ₹14 crore net profit in 2020-21". The Hindu Business Line. Retrieved 2025年07月21日.
- ^ "Karnataka Gramin Bank clocks ₹57,210 crore total business in 2021-22". The Hindu. Retrieved 2025年07月21日.
- ^ "Karnataka Gramin Bank achieves ₹61,203 crore total business in 2022-23". The Hindu. Retrieved 2025年07月21日.
- ^ "Rural banks drive digital transformation to boost financial inclusion". Mint. Retrieved 2025年07月21日.