Karnataka Grameena Bank Formed Through Amalgamation of Two RRBs

Current Context: With effect from May 1, 2025, the Government of India amalgamated Karnataka Vikas Grameena Bank and Karnataka Gramin Bank into a single Regional Rural Bank named Karnataka Grameena Bank (KaGB).

Key Highlights:

• Effective Date: May 1, 2025.
• New Bank: Karnataka Grameena Bank (KaGB).
• Amalgamated Banks: Karnataka Vikas Grameena Bank and Karnataka Gramin Bank.
• Head Office: Ballari, Karnataka.
• Sponsor Bank: Canara Bank.
• Objective: To strengthen rural banking and improve operational efficiency under the “One State, One RRB” policy.

Ownership Structure:

• Central Government – 50%
• Government of Karnataka – 15%
• Canara Bank – 35%

Scale and Reach at the Time of Amalgamation:

• 1,751 branches across Karnataka.
• Total business of ₹1,04,851 crore.
• It became India’s second-largest Regional Rural Bank at the time of its formation.

Leadership: Shreekant M. Bhandiwad, former Chairman of Karnataka Vikas Grameena Bank, became the Chairman of Karnataka Grameena Bank.

Question:

Q.1 What is the name of the Regional Rural Bank formed through the amalgamation of Karnataka Vikas Grameena Bank and Karnataka Gramin Bank in May 2025?
a) Karnataka Rural Bank
b) Karnataka Grameena Bank
c) Karnataka Vikas Bank
d) Karnataka Kisan Bank

Answer: b) Karnataka Vikas Grameena Bank and Karnataka Gramin Bank were amalgamated to form Karnataka Grameena Bank under the “One State, One RRB” policy.

[1]: https://financialservices.gov.in/sites/default/files/order-notices/RRBs-Amalgamation-Notification.pdf?utm_source=chatgpt.com "सी.जी.-डी.एल.-अ.-07042025-262329 CG-DL-E- ..."