Rajasthan Gramin Bank Formed after Merger with SBI Sponsorship

In a major move under the One State-One RRB policy, the Central Government has approved the merger of Rajasthan Marudhara Gramin Bank and Baroda Rajasthan Kshetriya Gramin Bank into a single entity named Rajasthan Gramin Bank, effective 01 May 2025. This decision follows extensive consultations with NABARD, the Government of Rajasthan, and the sponsor banks i.e. State Bank of India and Bank of Baroda, aimed at strengthening rural banking services across the state. The new head office will be located in Jaipur under the sponsorship of the State Bank of India.

Rajasthan Gramin Bank Formed after Merger with the SBI Sponsorship

The two transferor banks, Rajasthan Marudhara Gramin Bank and Baroda Rajasthan Kshetriya Gramin Bank, will cease to exist as separate entities, with all of their assets, liabilities and customer relationships being seamlessly transferred to the transferee bank, Rajasthan Gramin Bank. This unified structure is expected to bring uniformity in product offerings, interest rates, and customer service standards across the rural belt of Rajasthan. Senior executives from both banks will work together during a transition period to align policies, integrate technology platforms, and reassign staff to ensure minimal disruption to banking operations.

Rajasthan Gramin Bank Share Capital

Rajasthan Gramin Bank will launch with an authorised capital of ₹2,000 crore, divided into 200 crore fully paid shares of ₹10 each. The subscribed share capital of the new bank will mirror the combined subscribed capital of the two predecessor banks. In practical terms, the Central Government will hold shares worth ₹61.21 crore, the State Government of Rajasthan will hold ₹18.36 crore, and the Sponsor Bank (SBI) will hold ₹42.85 crore. This equity structure ensures that the bank is well-capitalised from day one, providing a solid financial base for future lending and expansion.

Rajasthan Gramin Bank Merger Benefits

By consolidating operations into one stronger institution, Rajasthan Gramin Bank will be better positioned to leverage advanced banking technology, attract skilled professionals, and roll out new credit and deposit schemes more efficiently. Farmers, small business owners, and rural households can expect faster loan processing, improved mobile and internet banking services, and a wider network of branches and ATMs. The merger also promises cost savings in administrative overheads, which can translate into more competitive interest rates for borrowers.