Three regional rural public sector banks namely Baroda Uttar Pradesh Grameen Bank, Kashi Gomti Samyut Gramin Bank and Purvanchal Bank are going to be merged on April 1, 2020 and constitute a single regional rural bank which will be titled as Baroda UP Bank as per a notification released by the Union finance ministry on Wednesday.
The Baroda UP Bank will be headquartered in Gorakhpur under the sponsorship of Bank of Baroda as per the notification. While Bank of Baroda is the sponsor of Baroda Uttar Pradesh Grameen Bank, Union Bank of India is the sponsor of Kashi Gomti Samyut Gramin Bank and the State Bank of India is the sponsor of Purvanchal Bank
The notification said the centre took this decision after the consultations with the National Bank for Agriculture and Rural Development (NABARD) and the sponsor banks of the concerned regional rural banks. It then decided to take the step as it was necessary in public interest and the interest of the three regional rural banks that they be amalgamated.
“… it is necessary in the public interest and in the interest of the development of the area served by the aforesaid Regional Rural Banks and also in the interest of the said Regional Rural Banks themselves, that the said regional rural banks should be amalgamated into a single regional rural bank,” said the notification
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