NEW DELHI: Three regional rural public sector banks - Baroda Uttar Pradesh Grameen Bank, Kashi Gomti Samyut Gramin Bank and Purvanchal Bank will be amalgamated on April 1, 2020 into a single regional rural bank which will be called Baroda UP Bank according to a notification published by the finance ministry on Wednesday.
The headquarters of the Baroda UP Bank will be in Gorakhpur under the sponsorship of Bank of Baroda according to the
notification. 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 while the State Bank of India is the sponsor of Purvanchal Bank.
The notification said the the government had after consultations with the National Bank for Agriculture and Rural Development (NABARD) and the sponsor banks of the concerned regional rural banks decided that 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 ET had reported in its July 24 edition that the government was planning to increase the operational efficiency of regional rural banks by merging multiple banks or merging regional rural banks with their sponsors