Press
Release
Five RRBs of West
Bengal sponsored by United Bank of India amalgamated to form BANGIYA GRAMIN VIKASH BANK
Despite impressive geographic coverage of the
RRBs providing intermediary and productive activities in rural sector, poor financial
health gripped these institutions. With the advent of financial sector reforms followed by
revamping package, a number of RRBs have turned around. The RRBs are now in consolidation
process and their numbers have come down from 196 to 98 through State-wise
and sponsor bank-wise amalgamation. United Bank of India has already amalgamated 4
sponsored RRBs in the State of Assam on 12.01.2006. In the State of West Bengal 5
sponsored RRBs viz., Mallabhim Gramin Bank, Gaur Gramin Bank, Sagar Gramin Bank, Nadia
Gramin Bank and Murshidabad Gramin Bank have been amalgamated on 21st Feb. 2007
into one named as ‘Bangiya Gramin Vikash Bank’ (BGVB).
The active support and guidance from the
Govt. of India, Govt. of West Bengal, RBI and NABARD and all possible support from UBI,
the sponsoring Bank, will greatly supplement the efforts of this amalgamated RRB
‘BGVB’ to turn around with its united strength and extending all banking
facilities like ATMs, Currency Chest, Foreign Exchange business etc. in near future so
that this RRB may function at par with other Commercial Banks.
BGVB with its Head Office at Berhampore in
Murshidabad District will have three tiers for better control and monitoring viz., Branch,
Controlling Offices and Head Office.
The amalgamated RRB will have a net work of
547 branches covering as
many as 11 out of 18 districts of West
Bengal. Out of these 547 branches as many as 510 Branches (93 %) are located in rural
areas. The total business is about Rs.4130 crores with deposits of Rs2876 crore and
advance of Rs1254 crore. The credit deposit ratio of the amalgamated RRB would be around
44% Micro finance is one of the focused areas of the RRB with Credit Linkage of 33508 SHGs
involving Rs34.36 crores. Keeping in view the direction of the Hon’ble Finance
Minister, Govt. of West Bengal agriculture will continue to be the thrust area along with
Kishan Credit Card. The number of KCCs issued has increased to 174018 in December’06
with a plan of 203000 nos. by the end of March’07. The Bank would continue to be
actively associated with Doubling of Farm Credit Programme of the Govt. of India. In fact,
the disbursement of farm credit of the five RRBs before amalgamation was of the order of
Rs355.01crores as at the end of December’06 which has already doubled since 2003-04.
The advantages of amalgamated RRBs are
manifold some of which may be mentioned as under:
One RRB instead of 5(five) RRBs would lead to
well organized, technically sound capable institution for ensuring effective monitoring of
the branches.
The exposure limit of the credit of
amalgamated RRB would be increased. Consequently, RRB would be able to compete with other
strong banks offering different products similar to other large Banks including higher
amount of credit to the RRBs clientele. The RRB with stronger base can also withstand
market fluctuations.
With the extensive computerization of
branches, controlling office and head office, better customer service will be ensured.
Other steps like net working and ATM etc. can be adopted by the amalgamated RRB with sound
financial base.
The amalgamated RRB would be able to reduce
operational cost by rationalizing the manpower strength of head office and other
controlling offices.
Shri Ambarish Nanda who has been appointed as
Chairman of the new Bank expressed hope that with support from NABARD, RBI and other
shareholders like Central Govt., State Govt. and sponsoring bank, United Bank of India,
the newly created bank would be able to bring about significant changes in the rural
credit scenario within shortest possible time. In the days ahead, the Bangiya Gramin
Vikash Bank will ensure the implementation of various agenda for development of the
economy in the State like -
1) Boosting investment credit under
Agriculture taking into account multipurpose need of the farmers through family approach.
2) Special emphasis will be given to organize
Self Help Groups and Micro Finance.
3) To cover all eligible farmers under KCC
Schemes.
4) Greater role in planning process in
co-ordination with BLBC and DCC.
5) Interaction and linkage with NABARD for
all round development.
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