SBM's two regional rural banks amalgamate

Mysore, June 10 (UNI) Cauvery Grameena Bank and Kalpatharu Grameena Bank, two regional rural banks sponsored by the State Bank of Mysore (SBM), have been amalgamated from the last week of May.

In a press note issued here today, General Manager (Planning and Development) B N Ramaiah said that as per the terms of the notification issued by the Union Government, the new Cauvery Kalpatharu Grameena Bank would have a network of 202 branches, covering Mysore, Chamarajanagara, Hassan, Tumkur, Bangalore Rural and Urban districts.

The bank had aggregate deposits of Rs 794 crore and advances of Rs 606 crore. The two banks have posted a combined net profit of Rs 16.79 crore for the year ended March 31, 2006, he added.

SBM Deputy General Manager Shivaswamy would be the Chairman of the new bank, headquartered at Mysore.

He said the amalgamation would enable the bank to expand the market share, achieve greater rate of growth, facilitate economics of scale and efficient pooling of manpower and resources. The bank had targetted a business turnover of Rs 1,750 crore for 2006-07 and proposed to bring down the net NPAs to nil, he added.

UNI BSP GD RKN1840