The Indian government has merged two regional rural banks in Karnataka

Current Context: On May 1, 2025, the Indian government merged Karnataka Vikas Grameena Bank (KVGB) and Karnataka Gramin Bank (KGB) to form the Karnataka Grameena Bank.

Key Highlights:

• Headquarters: Ballari, Karnataka.
• Objective: Strengthen rural banking under the ‘One State, One RRB’ policy.
• Ownership Structure:
• Central Government – 50%
• State Government – 15%
• Canara Bank (Sponsor Bank) – 35%

Scale & Reach:

• 1,751 branches across Karnataka.
• ₹1,04,851 crore business turnover, making it India’s second-largest RRB.

Leadership: Sreekant M. Bhandiwad, former KVGB Chairman, appointed as Chairman of Karnataka Grameena Bank.

Question:

Q.1 What is the name of the newly formed bank after the merger of Karnataka Vikas Grameena Bank (KVGB) and Karnataka Gramin Bank (KGB) in May 2025?
a) Karnataka Rural Bank
b) Karnataka Grameena Bank
c) Karnataka Vikas Bank
d) Karnataka Kisan Bank

Answer: b) The Indian government merged KVGB and KGB to form Karnataka Grameena Bank under the ‘One State, One RRB’ policy.