Four regional rural banks merge into one in Andhra Pradesh

Vijayawada: All the four regional rural banks (RRBs) in Andhra Pradesh have been amalgamated into one rural regional bank. The new bank has been named as Andhra Pradesh Grameena Bank (APGB). As part of the Centre's One-State, One-RRB initiative, the existing RRBs-Chaitanya Godavari Grameena Bank (CGGB), Andhra Pragathi Grameena Bank (APGB), Saptagiri Grameena Bank (SGB) and Andhra Pradesh Grameena Vikas Bank (APGVB) will become APGB.

The Centre on Tuesday issued a gazette notification to constitute one rural bank for Andhra Pradesh by bringing all the four RRB under one umbrella. Interestingly, the Amaravati, the capital city of Andhra Pradesh has been picked up as headquarter for the new rural bank while the union bank of India has been made as chief sponsor for the new bank.

Previously, CCGB was sponsored by Union Bank of India, APGB was sponsored by Canara Bank, SGB was managed by Indian Bank and APGVB was operated by State Bank of India. Each RRB has been managing the rural banks in 3-4 erstwhile districts in the state. With the merger of the four RRBs, the entire state will become one unit for operational purposes.

However, the notification issued by the union finance ministry on Tuesday said that the effective date for amalgamation has been fixed as May 1. All the new entity would have authorised capital of Rs 2,000 crore. As a precursor to consolidation, the capital infusion was done in these RRBs. Assets, liabilities and employees of existing RRBs will be transferred to APGB. Depositors accounts will also be shifted automatically. Employees will retain their jobs with the same terms and conditions. Entire Andhra Pradesh will become the operational jurisdiction of the new RRB.