Chiko Bank to merge with Kalpatharu Bank
Six banks will be merged to three
Chikmagalur-Kodagu Grameena Bank (Chiko bank) will be merged with Mysore Kalpatharu Grameena Bank.
In the backdrop of the Central government deciding to merge Regional Rural Banks, it has been planning to merge Chiko bank with the SBM sponsored Kalpatharu Grameena Bank.
Merger of rural banks is not a new move. The state had 13 rural banks. However, after merger there are six grameena banks. Now the six banks will be merged into three banks. In the future, there are plans to merge three banks and make it one.
Accordingly, Pragathi Grameena Bank which is operating in Kolara, Chikkaballapura, Chitradurga, Bellary, Davangere, Raichur, Koppal and Shimoga will be merged with Krishna Grameena Bank. Karnataka Vikasa Grameena Bank in Hubli and Dharwad will function all by themselves.
With the merger of banks, the investment of the bank will increase. The bank will increase the exposure limit, said Lead Bank Manager Arunachal Sharma.
With the merger of banks, there would be some administrative changes and the staff is likely to be transferred. However, customers will not be affected.
Chiko Bank President A P Suresh said “we have not received any official order from the government.” The Chiko bank was established in the year 1984. The headquarters is at Chikmagalur. There are 54 branches in two districts. The bank has a deposit of Rs 370 crore. There are 1.70 lakh account holders.
As on March 31, the bank has posted 63 lakh profit. Chiko Bank Senior Manager B G Prabhu said that the bank will provide agriculture loan, crop loan, kissan credit card, swarojgar credit card, personal loan, vehicle loan and others facilities.
