The newly formed Karnataka Grameena Bank will be led by Sreekant M Bhandiwad, the current Chairman of Karnataka Vikas Grameena Bank

As per the notification issued by the Central government in line with its ‘One State One RRB’ policy, the two regional rural banks (RRBs) in Karnataka — Karnataka Vikas Grameena Bank (KVGB) headquartered in Dharwad, and Karnataka Gramin Bank headquartered in Bellari — will be amalgamated to form a unified Karnataka Grameena Bank, effective from May 1. The new bank will have its Head Office in Ballari.

The newly formed Karnataka Grameena Bank will continue to be government-owned, with the Central government holding 50 per cent, the State government 15 per cent, and Canra Bank (sponsor bank) holding 35 per cent stake. The bank’s services will now be extended across Karnataka, making it the second largest RRB in the country with a business turnover of ₹1,04,851 crore and 1,751 branches.

The newly formed Karnataka Grameena Bank will be led by Sreekant M Bhandiwad, the current Chairman of KVGB. He has a Master’s degree in Agriculture and over 31 years of experience in the banking sector.

Bhandiwad said the two amalgamated RRBs have played a pivotal role, specially in channelising institutional credit to the rural economy. He affirmed that the newly formed Karnataka Grameena Bank will carry forward this legacy with renewed strength, greater security, and enhanced confidence.

KVGB had a business turnover of ₹38,714 crore with 629 branches across nine districts in Karnataka. Karnataka Gramin Bank had a turnover of ₹66,137 crore with 1,122 branches across 22 districts in the state.

Published on April 30, 2025