Odisha Gramya Bank from November 30

Indian Overseas Bank (IOB) will merge two regional rural banks (RRBs) belonging to Bank of India and UCO Bank with IOB’s Neelanchal Gramya Bank.

After the amalgamation the bank will float a new entity called Odisha Gramya Bank. This will come into effect from November 30, 2012.

Bank's Chairman and Managing Director, M Narendra said, BOI’s RRB, Baitarani Gramya Bank and UCO's RRB called Kalinga Gramya Bank will be merged with IOB’s Neelanchal Gramya Bank.

He added, both the banks net worth are positive and IOB's RRB is a profit making one.

“This (the merger) is as per the directive of the Ministry which has been looking at RRBs performance,” said A D M Chavali, executive director, IOB.

All the RRBs put together will have a book size of around Rs 10,000 crore with 480 branches across 15 districts in the state and it will be a single entity called Odhisha Gramya Bank, said Narendra.