| Karnataka Gramin Bank | |
| Company type | Regional rural bank |
| Industry | Banking |
| Predecessor | Pragathi Krishna Gramin Bank, Kaveri Gramin Bank |
| Founded | 4 January 2019 (6 years ago) (2019-01-04) |
| Defunct | 30 April 2025; 6 months ago (2025-04-30) |
| Successor | Karnataka Grameena Bank |
| Headquarters | Ballari, Karnataka , |
Key people | Shrikant M Bhandiwad (Chairman)[1] |
| Products | |
| Services |
|
| ₹4,400crore (US$520 million) (2023–2024) | |
| ₹700crore (US$83 million) | |
Number of employees | 3600 |
| Parent |
|
Karnataka Gramin Bank was an IndianRegional Rural Bank (RRB) headquartered inBallari, Karnataka.[2] It was established on 4 January 2019 through the amalgamation of two Regional Rural Banks sponsored byCanara Bank, as approved by theMinistry of Finance.[3] The bank operated under the regulatory framework of theRegional Rural Banks Act, 1976.[4] It functioned as a scheduled commercial bank serving rural and semi-urban areas across various districts of Karnataka.[5][6]
The Ministry of Finance announced the amalgamation through Gazette Notification CG-DL-E-07042025-262329 dated 5 April 2025.[7] Karnataka Gramin Bank (formerly Pragathi Krishna Gramin Bank) and Karnataka Vikas Grameena Bank merged effective 1 May 2025.[8][9][10][11]
The consolidation was implemented as part of the Government of India's "One State-One RRB" policy designed to improve operational efficiency.[12][13][14] Shreekant Bhandiwad, who previously served as Chairman of Karnataka Vikas Grameena Bank, was appointed as the inaugural Chairman of the merged institution.[15] This consolidation represents part of the broader governmental strategy to enhance Regional Rural Bank operational effectiveness through systematic amalgamation.
Pragathi Krishna Gramin Bank was formed in 2013 through the merger of Pragathi Gramin Bank and Krishna Grameena Bank.[16] Karnataka Vikas Grameena Bank was constituted in 2005 after amalgamating four Regional Rural Banks under recommendations of banking sector reforms.[17] Regional Rural Banks have evolved significantly since their inception in 1975, with consolidation becoming a key strategy for improving operational efficiency and financial viability.[18] As of March 2024, there are 43 Regional Rural Banks operating across India, sponsored by 12 scheduled commercial banks.[19] The government's consolidation strategy aims to merge these 43 banks into 28 entities for improved operational efficiency.[20]
Karnataka Gramin Bank maintains its headquarters in Ballari, Karnataka, and adheres to the standard Regional Rural Bank ownership structure involving the Government of India, Canara Bank, and the Karnataka state government as stakeholders. Regional Rural Banks operate under dual supervision from the Reserve Bank of India pursuant to the Banking Regulation Act, 1949, and the National Bank for Agriculture and Rural Development under Section 35(6) of the same legislation.[5] The institution provides comprehensive banking services encompassing deposit products, lending facilities, and payment systems. Karnataka Gramin Bank concentrates on delivering credit and banking facilities to small and marginal farmers, agricultural laborers, artisans, and small entrepreneurs in rural areas.[4]
Karnataka Gramin Bank operates mobile banking applications including "KaGB Connect" and "DiGi KaGB" for instant account opening through selfie-based verification technology. The institution has implemented mobile ATM services to promote digitization initiatives in rural areas.[21] The bank's technology infrastructure encompasses 1,167 branches, with Wipro Limited providing comprehensive technology solutions including core banking systems to enhance digital banking capabilities.[22][23] Lending operations are conducted in accordance with Regional Rural Bank mandates, focusing on agriculture, rural development, and micro-enterprise financing.
Regional Rural Banks collectively operate 22,069 branches across India as of March 2024, serving over 31.3 crore deposit accounts and 3 crore loan accounts.[19] Regional Rural Banks in South India have demonstrated significant performance variations, with comparative studies highlighting the importance of operational efficiency and consolidation strategies.[24]
Karnataka Gramin Bank recorded a net profit of ₹14 crore in fiscal year 2020-21 and achieved a total business of ₹57,210 crore in fiscal year 2021-22.[25][26] The bank's total business grew to ₹61,203 crore in fiscal year 2022-23, demonstrating consistent growth in its operations.[27]
Karnataka Gramin Bank's 2022-23 business growth of 7% exceeded the national Regional Rural Bank average of 5.2%.[19] The Government of India allocated ₹10,890 crore in recapitalisation assistance to Regional Rural Banks during fiscal years 2022 and 2023, intended to strengthen capital adequacy and operational capacity across the sector.[19] Contemporary rural banking trends indicate increasing emphasis on digital transformation and financial inclusion initiatives across India's Regional Rural Bank network.[28]