Chief Minister Pinarayi Vijayan formally announced the formation of the Kerala Bank here on Friday, stating that it promises infinite potential for the State. The Reserve Bank of India (RBI) had given its approval for the bank’s formation in early October.
Formed by the merger of district co-operative banks, the Kerala Bank would soon evolve into a more robust institution and the largest banking network in the State, the Chief Minister said.
By March 31, 2020, the bank would be ready to disburse ₹5,000 crore as short-term loans, Mr. Vijayan said. The interest rate on the loan would be lowered by at least 1%, he said. “That is, if the present interest rate is 7%, it would go down to six. It would bring immense relief to the farmers,” he said.
Modern banking facilities, including core banking solutions, would be introduced in the bank within a year, the Chief Minister said.
NoRKs to benefit
Non-resident Keralites (NoRKs) too stand to benefit from the venture, according to him. The State government had placed a request before the RBI for enabling Kerala Bank to accept NRI investment. The government expected a favourable decision from the RBI shortly, he said. A previous request submitted in this regard by the Kerala State Cooperative Bank had been revised and submitted afresh, he said.
