JAIPUR: Two regional rural banks promoted by UCO Bank — Jaipur Nagaur Anchalik Gramin Bank and Thar Anchalik Gramin Bank — have merged to form Jaipur Thar Gramin Bank with a total business of Rs.1366 crores and a staff strength of 900. The new bank will have its headquarters here in Jaipur and will operate in the districts of Jaipur, Dausa, Nagaur, Jodhpur, Barmer and Jaisalmer.

The Chairman of the newly formed Jaipur Thar Gramin Bank, B. C. Sahu, said here on Tuesday that the merger would help bring down the working expenditure and make the new entity more viable. It would allow the spread of area of operation of the new bank.

The merged banks, which operated in profit, together have 209 branches all of which would continue functioning, Mr. Sahu informed.

The merger forms part of the reorganisation of the regional rural banks (RRBs) initiated by the Union Finance Ministry in September 2005. The proposal is to bring down the number of 196 RRBs in the country to 74 through mergers and amalgamations. So far 43 RRBs in Rajasthan, Karnataka, Gujarat, Uttar Pradesh, Bihar, Orissa and Haryana have been reorganised to form 15 banks.

Rajasthan has 14 RRBs and the proposal is to reduce the number to six. All the 14 RRBs together have 1,100 branches and staff strength of 5,500. Rajendra Sharma, president of the Gramin Bank Employees' Union Rajasthan, said merger of five Bank of Baroda-sponsored RRBs and three sponsored by the State Bank of Bikaner and Jaipur was on the cards.

The five RRBs of BoB — Bundi Chittorgarh Gramin Bank, Dungarpur Banswara Kshetriya Gramin Bank, Bhilwara Ajmer Kshetriya Gramin Bank, Marudhar Kshetriya Gramin Bank and Aravalli Kshetriya Gramin Bank — are likely to be amalgamated to form Baroda Gramin Bank with headquarters at Ajmer. Similarly, the move was to merge the three SBBJ-sponsored RRBs - Marwar Kshetriya Gramin Bank, Sriganganagar Kshetriya Gramin Bank and Bikaner Kshetriya Gramin Bank — into one entity headquartered at Pali, Mr.Sharma said.

A week ago two RRBs — Shekhawati Gramin Bank and Bharatpur Alwar Gramin Bank — were merged to form Rajasthan Gramin Bank with its headquarters at Alwar. According to official sources, the single RRB sponsored by Central Bank of India and Bank of Rajasthan each would continue till a decision is taken to reduce the number of RRBs in Rajasthan to four from six.

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