DelorisQha at 13:36, 1 December 2025

2025-12-01T13:36:02Z

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{{Short description|Defuncted Indian regional bank}}
{{Infobox company
| name =
| logo =
| logo_size =
| logo_alt =
| logo_caption =
| image =
| image_size =
| image_alt =
| image_caption =
| former_name =
| type = [[Regional rural bank]]
| trade_name = Karnataka Gramin Bank
| ISIN =
| industry = [[Banking]]
| founded = {{start date and years ago|2019|1|4|df=y|p=y}}
| founder =
| defunct = {{End date and age|df=yes|2025|04|30}}
| fate = Merged with [[Karnataka Vikas Grameena Bank]] to form [[Karnataka Grameena Bank]]
| successor = [[Karnataka Grameena Bank]]
| predecessor = Pragathi Krishna Gramin Bank,
Kaveri Gramin Bank
| hq_location =
| hq_location_city = [[Ballari]], Karnataka
| hq_location_country = [[India]]
| area_served =
| key_people = Shrikant M Bhandiwad (Chairman)<ref>{{cite web |url=https://karnatakagrameenabank.com/organisational-information/boardofdirectors |title=Board of Directors |website=Karnataka Gramin Bank |access-date=22 July 2025 |archive-url=https://web.archive.org/web/20250722000000/https://karnatakagrameenabank.com/organisational-information/boardofdirectors |archive-date=22 July 2025 |url-status=live }}</ref>
| products = {{Bulleted_list|[[Retail banking|Consumer banking]]|[[Commercial bank|Corporate banking]]|[[Financial services|Finance and insurance]]|[[Mortgage loan]]s|[[Private banking]]|[[Savings]]|[[Asset management]]|[[Wealth management]]}}
| services = {{bulleted list
|Deposit Services
|Savings accounts
|Fixed deposits / Certificates of Deposit (CDs)
|Recurring deposit accounts
|Personal loans
|Home loans / Mortgages
|Car loans / Auto financing
|Education loans
|Business loans
|Credit cards
|Payment & Transfer Services
Debit cards
|Online banking
|Mobile banking
|Wire transfers
|ATM services (cash withdrawal, deposits)
|Investment & Wealth Management
Mutual funds
|Retirement accounts (Pension, IRA, 401k)
|Stock trading & brokerage
|Insurance (life, health, property)
|Safe deposit lockers
|Foreign currency exchange
|Financial advisory services
|Business banking (merchant accounts, payroll)
}}
| revenue =
| operating_income = {{INRConvert|4400|c|lk=on}}<br/>(2023{{endash}}2024)
| net_income = {{INRConvert|700|c|lk=on}}
| assets =
| equity =
| num_employees = 3600
| parent = *[[Government of India]] (50%)
*[[Government of Karnataka]] (15%)
*[[Canara Bank]] (35%)
| divisions =
| subsidiaries =
| website =
| footnotes =
}}
'''Karnataka Gramin Bank''' was an Indian [[Regional rural bank|Regional Rural Bank]] (RRB) headquartered in [[Ballari|Ballari, Karnataka]].<ref>{{cite web |title=List of Regional Rural Banks functioning in the country |url=https://financialservices.gov.in/beta/en/list-rrbs-functioning-country |access-date=2025-07-21 |publisher=Department of Financial Services, Ministry of Finance, Government of India}}</ref> It was established on 4 January 2019 through the amalgamation of two Regional Rural Banks sponsored by [[Canara Bank]], as approved by the [[Ministry of Finance (India)|Ministry of Finance]].<ref>{{cite news |title=Centre merges Karnataka Gramin Bank and Karnataka Vikas Grameena Bank |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/centre-merges-karnataka-gramin-bank-and-karnataka-vikas-grameena-bank/articleshow/109508745.cms |access-date=2025-07-21 |publisher=The Economic Times}}</ref> The bank operated under the regulatory framework of the ''Regional Rural Banks Act, 1976''.<ref name="auto">{{cite web |title=Regional Rural Banks |url=https://financialservices.gov.in/beta/en/regional-rural-bank-page |access-date=2025-07-21 |publisher=Department of Financial Services, Ministry of Finance, Government of India}}</ref> It functioned as a scheduled commercial bank serving rural and semi-urban areas across various districts of Karnataka.<ref name="auto2">{{cite web |title=Regional Rural Banks |url=https://www.rbi.org.in/Scripts/AboutUsDisplay.aspx?pg=RegionalRuralBanks.htm |access-date=2025-07-21 |publisher=Reserve Bank of India}}</ref><ref>{{cite web |title=List of banks in India |url=https://rbi.org.in/commonman/english/scripts/banksinindia.aspx |access-date=2025-07-21 |publisher=Reserve Bank of India}}</ref>

==History==

The Ministry of Finance announced the amalgamation through Gazette Notification CG-DL-E-07042025-262329 dated 5 April 2025.<ref>{{cite web|url=https://karnatakagraminbank.com/img/images/Gazette%20Notification%20of%20KAGB-KVGB.pdf|title=Gazette Notification of KAGB-KVGB|publisher=Ministry of Finance, Government of India|access-date=2025-07-21}}</ref> Karnataka Gramin Bank (formerly Pragathi Krishna Gramin Bank) and Karnataka Vikas Grameena Bank merged effective 1 May 2025.<ref>{{cite news|url=https://www.thehindu.com/business/unified-karnataka-grameena-bank-to-come-into-existence-on-may-1/article69508962.ece|title=Unified Karnataka Grameena Bank to come into existence on May 1|work=The Hindu|access-date=2025-07-21}}</ref><ref>{{cite news|url=https://www.thehindubusinessline.com/money-and-banking/centre-amalgamates-two-rrbs-in-karnataka/article69509273.ece|title=Centre amalgamates two RRBs in Karnataka|publisher=The Hindu Business Line|access-date=2025-07-21}}</ref><ref>{{cite news|url=https://www.deccanherald.com/business/economy/karnataka-to-have-one-regional-rural-bank-after-centre-enforces-merger-3484668|title=Karnataka to have one regional rural bank after Centre enforces merger|publisher=Deccan Herald|access-date=2025-07-21}}</ref><ref>{{cite news|url=https://www.prajavani.net/district/dharwad/new-bank-dharwad-3268775|title=New Bank Dharwad|publisher=Prajavani|access-date=2025-07-21}}</ref>

The consolidation was implemented as part of the Government of India's "One State-One RRB" policy designed to improve operational efficiency.<ref>{{cite web|url=https://financialservices.gov.in/beta/sites/default/files/2024-09/ANNUAL-REPORT-DFS-2023-24.pdf|title=Annual Report 2023-24|publisher=Department of Financial Services, Ministry of Finance, Government of India|access-date=2025-07-21}}</ref><ref>{{cite news|url=https://vijaykarnataka.com/business/news/one-state-one-rrb-central-government-to-merge-43-banks-including-2-banks-in-karnataka/articleshow/120057445.cms|title=One State One RRB: Central government to merge 43 banks including 2 banks in Karnataka|publisher=Vijaya Karnataka|access-date=2025-07-21}}</ref><ref>{{cite web|url=https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12784|title=Branch Expansion Guidelines for Regional Rural Banks|publisher=Reserve Bank of India|access-date=2025-07-21}}</ref> Shreekant Bhandiwad, who previously served as Chairman of Karnataka Vikas Grameena Bank, was appointed as the inaugural Chairman of the merged institution.<ref>{{cite web|url=https://www.kvgbank.com/|title=Karnataka Vikas Grameena Bank|publisher=Karnataka Vikas Grameena Bank|access-date=2025-07-21}}</ref> This consolidation represents part of the broader governmental strategy to enhance Regional Rural Bank operational effectiveness through systematic amalgamation.
===Merger and formation===
Pragathi Krishna Gramin Bank was formed in 2013 through the merger of Pragathi Gramin Bank and Krishna Grameena Bank.<ref>{{cite web|url=https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12582|title=Master Circular on Regional Rural Banks|publisher=Reserve Bank of India|access-date=2025-07-21}}</ref> Karnataka Vikas Grameena Bank was constituted in 2005 after amalgamating four Regional Rural Banks under recommendations of banking sector reforms.<ref>{{cite news|url=https://www.prajavani.net/business/commerce-news/rural-banks-merger-625344.html|title=Rural Banks Merger|publisher=Prajavani|access-date=2025-07-21}}</ref> Regional Rural Banks have evolved significantly since their inception in 1975, with consolidation becoming a key strategy for improving operational efficiency and financial viability.<ref>{{cite web|url=https://oldror.lbp.world/UploadedData/14160.pdf|title=Regional Rural Banks: Performance and Challenges|publisher=LBP Research|access-date=2025-07-21}}</ref> As of March 2024, there are 43 Regional Rural Banks operating across India, sponsored by 12 scheduled commercial banks.<ref name="auto1">{{cite web|url=https://www.nabard.org/annual-report/empowering-rural-financial-institutions.html|title=Empowering Rural Financial Institutions|publisher=NABARD Annual Report|access-date=2025-07-21}}</ref> The government's consolidation strategy aims to merge these 43 banks into 28 entities for improved operational efficiency.<ref>{{cite web|url=https://elplaw.in/wp-content/uploads/2025/04/The-Journey-of-Regional-Rural-Banks-in-India-Evolution-Towards-Consolidation.pdf|title=The Journey of Regional Rural Banks in India: Evolution Towards Consolidation|publisher=ELP Law|access-date=2025-07-21}}</ref>

==Operations==

Karnataka Gramin Bank maintains its headquarters in Ballari, Karnataka, and adheres to the standard Regional Rural Bank ownership structure involving the Government of India, Canara Bank, and the Karnataka state government as stakeholders. Regional Rural Banks operate under dual supervision from the Reserve Bank of India pursuant to the Banking Regulation Act, 1949, and the National Bank for Agriculture and Rural Development under Section 35(6) of the same legislation.<ref name="auto2"/> The institution provides comprehensive banking services encompassing deposit products, lending facilities, and payment systems. Karnataka Gramin Bank concentrates on delivering credit and banking facilities to small and marginal farmers, agricultural laborers, artisans, and small entrepreneurs in rural areas.<ref name="auto"/>
===Branches and digitalization===
Karnataka Gramin Bank operates mobile banking applications including "KaGB Connect" and "DiGi KaGB" for instant account opening through selfie-based verification technology. The institution has implemented mobile ATM services to promote digitization initiatives in rural areas.<ref>{{cite news|url=https://www.aninews.in/news/national/general-news/karnataka-gramin-bank-initiates-mobile-atms-to-push-digitisation-in-rural-areas20191107233704|title=Karnataka Gramin Bank initiates mobile ATMs to push digitisation in rural areas|publisher=ANI News|access-date=2025-07-21}}</ref> The bank's technology infrastructure encompasses 1,167 branches, with Wipro Limited providing comprehensive technology solutions including core banking systems to enhance digital banking capabilities.<ref>{{cite news|url=https://www.thehindu.com/news/cities/bangalore/wipro-to-tech-ready-1167-branches-of-karnataka-gramin-bank/article31093899.ece|title=Wipro to tech-ready 1,167 branches of Karnataka Gramin Bank|work=The Hindu|access-date=2025-07-21}}</ref><ref>{{cite news|url=https://www.business-standard.com/article/news-cm/wipro-deploys-core-banking-solutions-platform-for-karnataka-grameena-bank-120031701185_1.html|title=Wipro deploys core banking solutions platform for Karnataka Grameena Bank|publisher=Business Standard|access-date=2025-07-21}}</ref> Lending operations are conducted in accordance with Regional Rural Bank mandates, focusing on agriculture, rural development, and micro-enterprise financing.

==Performance==

Regional Rural Banks collectively operate 22,069 branches across India as of March 2024, serving over 31.3 crore deposit accounts and 3 crore loan accounts.<ref name="auto1"/> Regional Rural Banks in South India have demonstrated significant performance variations, with comparative studies highlighting the importance of operational efficiency and consolidation strategies.<ref>{{cite web|url=https://www.researchgate.net/publication/364108905|title=Comparative Study on Selected Regional Rural Banks of South India|access-date=2025-07-21}}</ref>

Karnataka Gramin Bank recorded a net profit of ₹14 crore in fiscal year 2020-21 and achieved a total business of ₹57,210 crore in fiscal year 2021-22.<ref>{{cite news|url=https://www.thehindubusinessline.com/money-and-banking/karnataka-gramin-bank-records-14-crore-net-profit-in-2020-21/article35085383.ece|title=Karnataka Gramin Bank records ₹14 crore net profit in 2020-21|publisher=The Hindu Business Line|access-date=2025-07-21}}</ref><ref>{{cite news|url=https://www.thehindu.com/news/national/karnataka/karnataka-gramin-bank-clocks-rs57210-crore-total-business-in-2021-22/article65527313.ece|title=Karnataka Gramin Bank clocks ₹57,210 crore total business in 2021-22|work=The Hindu|access-date=2025-07-21}}</ref> The bank's total business grew to ₹61,203 crore in fiscal year 2022-23, demonstrating consistent growth in its operations.<ref>{{cite news|url=https://www.thehindu.com/news/national/karnataka/karnataka-gramin-bank-achieves-61203-crore-total-business-in-2022-23/article66893758.ece|title=Karnataka Gramin Bank achieves ₹61,203 crore total business in 2022-23|work=The Hindu|access-date=2025-07-21}}</ref>
===Bank growth===
Karnataka Gramin Bank's 2022-23 business growth of 7% exceeded the national Regional Rural Bank average of 5.2%.<ref name="auto1"/> The Government of India allocated ₹10,890 crore in recapitalisation assistance to Regional Rural Banks during fiscal years 2022 and 2023, intended to strengthen capital adequacy and operational capacity across the sector.<ref name="auto1"/> Contemporary rural banking trends indicate increasing emphasis on digital transformation and financial inclusion initiatives across India's Regional Rural Bank network.<ref>{{cite news|url=https://www.livemint.com/industry/banking/rural-banks-drive-digital-transformation-to-boost-financial-inclusion-11647859200000.html|title=Rural banks drive digital transformation to boost financial inclusion|publisher=Mint|access-date=2025-07-21}}</ref>

==References==
{{Reflist}}

[[Category:Regional rural banks of India]]

Karnataka Gramin Bank - Revision history

DelorisQha at 13:36, 1 December 2025