Staff Correspondent

MYSORE: Cauvery Grameena Bank and Kalpatharu Bank, the two regional rural banks promoted by State Bank of Mysore have been amalgamated to form Cauvery Kalpatharu Grameena Bank.

Chairman of the new bank Shivaswamy told The Hindu that the banks were merged on June 24, following a directive by the Union Government.

Mr. Shivaswamy said that staff members would continue to remain in the new entity, and transfers would not be effected this year. It would start only next year, he said.

The new bank would have a network of 202 branches covering Mysore, Chamarajanagar, Hassan, Tumkur, Bangalore Rural and Bangalore Urban districts. It will have an aggregate deposit of Rs. 794 crore, and advance of Rs. 606 crore. The two regional rural banks had posted a combined net profit of Rs. 16.79 crore for the year ending March 31, 2006, he said.

The bank had targeted a business turnover of Rs. 1,750 crore for 2006-2007, and planned to bring down the net Non Performing Assets to zero per cent, he said. Mr. Shivaswamy said the amalgamation would enable the bank to expand the market share and achieve greater rate of growth.