The finance ministry may decide to merge two regional rural banks in
Uttarakhand, the Uttaranchal Gramin Bank (UGB) and Nainital Almora
Kshetriya Gramin Bank (NAKGB). The merger will be a step towards
fulfillment of the ministry's process of amalgamation of regional rural banks (RRB's) across the country.
On
the matter, a senior executive of UGB said, "The entity created through
the merger would become the second largest bank in Uttarakhand, after
the State Bank of India
(SBI), in term of total branches." The proposed new bank (after the
merger) will have a total of 228 branches and its total business will
increase to Rs. 3100 crore, with SBI remaining its sponsor bank.
It
is reported that UGB has a credit deposit (CD) ratio of 54.06 percent,
which is two percent more than the average of CD ratios of all the banks
in the state. It recorded profits to the tune of Rs. 8.71 crore in the
last fiscal year. Similarly, NAKGB recorded net profits to the tune of
Rs. 7.31 crore the previous fiscal.
On the matter, a senior
official of the finance ministry said, "Since both the banks are making
profits, the new entity will also do well."
No comments:
Post a Comment