Two Regional Rural banks going to amalgamate

Indian Bank, on Friday, said the Department of Financial Services, Ministry of Finance, has issued a notification for amalgamation of Pallavan Grama Bank (sponsored by Indian Bank) and Pandyan Grama Bank (sponsored by Indian Overseas Bank) in Tamil Nadu into a single Regional Rural Bank.

The new bank will be called Tamil Nadu Grama Bank, with its head office at Salem, under \the sponsorship of Indian Bank.

Read More

Recapitalisation scheme for Regional Rural Banks(RRB) extended

The Union Cabinet on Wednesday extended the recapitalisation scheme for "Regional Rural Banks" (RRBs) for the next three years. 

"This will enable the RRBs to maintain the minimum prescribed capital to risk weighted assets ratio (CRAR) of 9 per cent," the Cabinet said in a statement. 

"A strong capital structure and minimum required level of CRAR will ensure financial stability of RRBs which will enable them to play a greater role in financial inclusion and meeting the credit requirements of rural areas." 

Currently, there are 56 RRBs in the country. On provisional basis, as on March 31, 2017, the total credit given by RRBs is Rs 228,599 crore. 

The scheme was started in FY2010-11 and has been extended twice in the year 2012-13 and 2015-16. The last extension was up to March 31, 2017. 

A total amount of Rs 1,107.20 crore, as the Indian government's share, out of Rs 1,450 crore, has been released to RRBs up to March 31, 2017, the statement said. 

"The remaining amount of Rs 342.80 crore will be utilised to provide recapitalisation support to RRBs whose CRAR is below 9 per cent, during the years 2017-18, 2018-19 and 2019-20." 

As per the statement, the identification of RRBs which require recapitalisation will be decided in consultation with the National Bank For Agriculture And Rural Development. 

Read More

Centre plans amalgamation of Regional Rural Banks(RRBs) at the State level

The government has decided to start the consolidation process of Regional Rural Banks (RRB) after a gap of six years and bring down the number of such entities to 38 from 56 now.In a communication to the chiefs of public sector banks, which are the sponsors of the RRBs, the finance ministry asked them to amalgamate the RRBs within a State. 

The ministry, in its letter in the first week of this month, also mentioned the list of RRBs which could be merged.The letter also asked the lenders to obtain a no-objection certificate from the board for the merger.“It is envisaged that the RRBs within a state could be amalgamated. Accordingly, GoI, in consultation with Nabard, has approved the road map for amalgamation of RRBs, which will bring down the number of RRBs to 38 from 56,” the letter said.

The ministry expects that the consolidation process would enable RRBs to minimise their overhead costs, optimise use of technology, enhance capital base and area of operation and their exposure.“Further, this will bring about better scale efficiency, higher productivity, robust financial health of RRBs, improved financial inclusion and greater credit flow to rural areas. It is expected that amalgamation will bring about better functional entities,” it said.

Third phase 

This is the third phase of consolidation among Regional Rural Banks(RRBs), but the first attempt by the present NDA government which came into power in 2014.The first phase of consolidation was in 2004-05 when Regional Rural Banks(RRBs) of same sponsor banks, within a state, were merged. As a result, the number of RRBs came down from 196 to 82. The second phase was in 2011-12, when RRBs with geographical contiguous areas of operation within a state were merged, across sponsor banks. As a result, the number of RRBs further declined to 56.

While Regional Rural Banks(RRBs) have taken deep roots in the last four decades of their existence and become an important entity for rural credit, their financial viability became a matter of concern since 1980, just five years after their existence.

As a result, the government decided to start merging Regional Rural Banks(RRBs) with commercial banks.

While consolidation among public sector banks remained at the drawing board, the government was successful in merging five associate banks of State Bank of India as well as Bharatiya Mahila Bank, with SBI in 2017-18.

Read More

IBPS RRBs VII for Officer & Office Assistant Notification Out 2018

The Institute of Banking Personnel Selection has released the notification of IBPS RRB VII for the year 2018. According to this notification, the next online examination for the Common Recruitment Process for Regional Rural Banks (IBPS RRBs VII) for the recruitment of Officers (Scale I, II & III) and Office Assistants (Multipurpose) will be conducted by the Institute of Banking Selection (IBPS) between August and October 2018. The online examination will be held in two phases (preliminary & main).  You can apply online from 8th June 2018 to 2nd July 2018. Other details are given below.

Exam Name: IBPS RRB VII Common Written Exam (Online)

Posts:

Group “A”-Officers (Scale-I, II & III)

Group “B”-Office Assistant (Multipurpose)

Educational Qualification:

• Office Assistant (Multipurpose): Bachelor’s degree in any discipline from a recognized University or its equivalent (a) Proficiency in local language as prescribed by the participating RRB/s* (b) Desirable: Working knowledge of Computer. 
• Officer Scale-I (Assistant Manager): (i.) Bachelor’s degree in any discipline from a recognized University or its equivalent Preference will be given to the candidates having degree in Agriculture, Horticulture, Forestry, Animal Husbandry, Veterinary Science, Agricultural Engineering, Pisciculture, Agricultural Marketing and Cooperation, Information Technology, Management, Law, Economics or Accountancy; (ii.) Proficiency in local language as prescribed by the participating RRB/s* (iii.) Desirable: working knowledge of Computer.
• Officer Scale-II General Banking Officer (Manager): Bachelor’s degree in any discipline from a recognized University or its equivalent with a minimum of 50% marks in aggregate. Preference will be given to the candidates having degree in Banking, Finance, Marketing, Agriculture, Horticulture, Forestry, Animal Husbandry, Veterinary Science, Agricultural Engineering, Pisciculture, Agricultural Marketing and Cooperation, Information Technology, Management, Law, Economics and Accountancy. Two years as an officer in a Bank or Financial Institution. 
• Officer Scale-II Specialist Officers (Manager): 
• Information Technology Officer: Bachelor’s degree from a recognised University in Electronics / Communication / Computer Science / Information Technology or its equivalent with a minimum of 50% marks in aggregate. Desirable: Certificate in ASP, PHP, C++, Java, VB, VC, OCP etc
• Chartered Accountant: Certified Associate (CA) from Institute of Chartered Accountants of India
• Law Officer: Degree from a recognised University in Law or its equivalent with a minimum of 50% marks in aggregate. 
• Treasury Manager: Chartered Accountant or MBA in Finance from a recognized university/ institution
• Marketing Officer: MBA in Marketing from a recognized university Agricultural Officer: Bachelor’s degree in Agriculture/ Horticulture/ Dairy/ Animal Husbandry/ Forestry/ Veterinary Science/ Agricultural Engineering/ Pisciculture from a recognized university or its equivalent with a minimum of 50% marks in aggregate
• Officer Scale-III (Senior Manager): Bachelor’s degree in any discipline from a recognized University or its equivalent with a minimum of 50% marks in aggregate. Preference will be given to the candidates having Degree/ Diploma in Banking, Finance, Marketing, Agriculture, Horticulture, Forestry, Animal Husbandry, Veterinary Science, Agricultural Engineering, Pisciculture, Agricultural Marketing and Co-operation, Information Technology, Management, Law, Economics and Accountancy.

Age Limit: (as on 1st June 2018)

• For Officers Scale I (Asstt. Managers) : Above 18 years - Below 30 years i.e. candidates should not have been born earlier than 03.06.1988 and later than 31.05.2000 (both dates inclusive)
• For Officer Scale- II (Manager) : Above 21 years - Below 32 years i.e. candidates should not have been born earlier than 03.06.1986 and later than 31.05.1997 (both dates inclusive)
• For Officer Scale- III (Senior Manager) : Above 21 years - Below 40 years i.e. candidates should not have been born earlier than 03.06.1978 and later than 31.05.1997 (both dates inclusive)
• For Office Assistant (Multipurpose) : Between 18 years and 28 years i.e. candidates should have not been born earlier than 02.06.1990 and later than 01.06.2000 (both dates inclusive) 

Application Fee:

• Rs. 100/- for SC / ST / PWD Candidates
• Rs. 600/- for all others

How to Apply: Interested Candidates may Apply Online Through official Website.

Advertisement:
           Click on right corner of PDF to view large

Apply Online: Click Here

Important Dates:

Starting Date of Online Application: 08th June 2018

Last Date to Apply Online: 2nd July 2018

Download of call letters for Pre- Exam Training for Officer Scale-I : July 2018

Conduct of Pre-Exam Training for Officer Scale-I : 30th July 2018 to 4th August 2018

Download of call letters for Pre- Exam Training for Office Assistant : July 2018

Conduct of Pre-Exam Training for Office Assistant : 6th August 2018 to 11th August 2018

Download of call letters for online examination – Preliminary :

• Officer Scale-I : July 2018
• Office Assistant : August 2018

Online Examination – Preliminary :

• Officer Scale-I
• 11th August 2018
• 2th August 2018
• 18th August 2018 (if required)
• Office Assistant
• 19th August 2018
• 25th August 2018
• 1st September 2018

Result of Online exam – Preliminary :

• Officer Scale-I – September 2018
• Office Assistant- September 2018

Download of Call letter for Online exam – Main / Single

• Officer Scale-I, II& III : September 2018
• Office Assistant : September 2018

Online Examination – Main / Single

• Officers (I, II & III) : 30th September 2018
• Office Assistant - 7th October 2018

Declaration of Result – Main/ Single (For Officers Scale I, II and III) : October 2018

Download of call letters for interview (For Officers Scale I, II and III) : November 2018

Conduct of interview (For Officers Scale I, II and III) : November 2018

Provisional Allotment (For Officers Scale I, II and III & Office Assistant (Multipurpose)) : January 2019

Read More

Regional rural banks(RRBs) come under PCA (Prompt Corrective Action)

The prompt corrective action framework for banks will also apply to regional rural banks (RRBs). National Bank for Agriculture and Rural Development (Nabard), which supervises RRBs, has directed them to initiate self-corrective action based on parameters such as capital adequacy, asset quality and profitability which largely follows the framework for bigger commercial banks. 

Accordingly, RRBs will have to slow down business if their capital adequacy falls below 9%, net non-performing assets ratio rises over 10% of total advances and return on assets falls below 0.25%. Nabard said it has consulted the RBI before finalising the action plan. 

The bank has tightened its supervisory noose around RRBs, saying that failure of taking corrective action when required will attract harsher regulatory action such as monetary penalties and issuing of show cause notices to the management. “To ensure financial soundness and functional efficiency of RRBs with statutory and regulatory compliance, the board of supervision has considered introducing Supervisory Action Framework for Prompt Corrective Action,” Nabard said in a note to the RRB chairmen.

“The focus is to ensure early rectification of the irregularities or deficiencies,” the note said. 

The framework will be implemented based on the findings of Nabard’s inspection with reference to RRBs’ financial performance at the end of March 2018.”The corrective action should include close monitoring of NPAs and its recovery, mobilisation of low cost deposits and curtailing of expenditure. These banks should prepare a time-bound action plan for improvement in their functioning,” Nabard said.

“The multiplicity of regulatory directions are often contradictory. 

The different regulatory authorities must bring about a semblance of uniformity in approach in implementation of NPA norms on investment , ” said SK Bhattacharjee, general secretary of All India RRB Officers’ federation. 

“Adequate emphasis has already been placed on reliance of systemdriven NPAs. However, a commonly accepted practice must be evolved to come out with a realistic picture of the financial health of RRBs, and all RRBs must follow this,” he said. 

There are 56 RRBs with a cumulative business over Rs 6 lakh crore at the end of FY17. 

Nabard said RRBs with accumulated losses or having 15% or more NPAs will not be allowed to venture into new lines of business. 

Source- Economic times

Read More

Government sanctions Rs 700 crore to recapitalize regional rural banks

The government today sanctioned an additional Rs 700 crore for the recapitalization of weak regional rural banks (RRBs) and extended the validity period for the fund infusion to next fiscal.

"The validity period for recapitalization of RRBs had ended. It has been extended to 2016-17. Rs 700 crore additional amount has been sanctioned," Finance Minister Arun Jaitley said after the Cabinet meeting here.

The Cabinet, chaired by Prime Minister Narendra Modi, approved for extension for the next three years, that is up to 2016-17 of the scheme of recapitalization of weak RRBs, he said.

These banks are unable to maintain their minimum Capital to Risk weighted Assets Ratio (CRAR) of 9%, he said, adding, this decision will help them improve this ratio.

A strong capital structure and minimum required level of CRAR will ensure financial stability of RRBs which will enable them to play a greater role in financial inclusion and meeting the credit requirements of rural areas, he said.

Presently, there is a Budget provision of Rs 15 crore for recapitalization of RRBs.

Read More

Regional rural banks must be merged into one

Malappuram-based, Canara Bank-sponsored Kerala Gramin Bank is the country’s largest regional rural bank (RRB) in terms of business volume. With ₹17,800 crore of business and 535 branches, KGB is now set to launch Internet banking in September. It will be the first RRB to roll out Internet banking, Chairman, Shaji KV, told Business Line. Excerpts from an interview:

RRBs were set up in a different time period. But the Indian economy has since grown enormously and commercial banking has gone high-tech. Do RRBs still have relevance?

The relevance has, in fact, increased. More than half of the population still depends on agriculture for their livelihood and agricultural credit continues to be scarce. Thousands of villages are unbanked. Small low-interest loans to farmers and priority sectors make up about 80 per cent of the advances of most RRBs now. In many regions, gramin banks are the only option for villagers. The reasons for setting up a string of RRBs following the enactment of the RRB Act, 1976, are still valid. RRBs have regional character, better human interface, low cost of operations and offer low-interest loans.

But don’t they need to change with the times?

True. They need to adapt to the changing needs of the rural people and the economy. They need to be re-oriented and their operational base strengthened. Customer relations should be vastly improved. One advantage of RRBs over commercial banks is their local familiarity. RRBs should combine the professionalism of commercial banks with their local familiarity to provide better customer service. New banking technologies should be made available to RRBs, too. They should go in for ATMs and Internet banking. They should aim for gramin banking-plus.

Read More