October 23, 2021
  • October 23, 2021
  • Home
  • Bank Mergers
  • Gramin banks request merger with sponsor banks: The Tribune India

Gramin banks request merger with sponsor banks: The Tribune India

By on June 2, 2021 0

Vijay C Roy

Tribune press service

Chandigarh, June 1

While the merger of the Central District Cooperative Banks with the State Cooperative Banks of the Punjab is in its final stages, the Federation of Punjab Bank Executives Gramin has demanded the merger of the Regional Rural Banks (RRBs), commonly known as gramin banks, with their sponsor banks.

Punjab Gramin Bank is one of the RRBs operating in Punjab with 422 branches across the state. It recorded a net profit of Rs 50.68 crore in 2019-2020.

“Since the formation of the RRBs in 1975, they have provided a first-rate service to the economy, especially for the rehabilitation of oppressed and rural populations. However, with the cutting edge technology used by public sector banks and private banks, Gramin banks are feeling the heat with more than a dozen RRBs taking losses, ”said Pali Ram Bansal, Secretary General of Punjab. Gramin Bank Officers Federation.

RRBs reported a net loss of Rs 22,026 crore in the fiscal year ended March 31, 2020, compared to a loss of Rs 652 crore in fiscal 19.

“The merger of the RRBs with the sponsor bank will have an increased network in rural areas and the RRBs will benefit from the advanced technology and the experience of the management of the sponsor banks,” he said.

Bansal questioned why the grass banks were always kept as separate entities despite the fact that in the majority of cases the sponsor bank and the RRBs are competitors.

Source link