Maharashtra Gramin Bank, Vidharbha Konkan Gramin Bank to Merge Effective Maharashtra Day

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Special Correspondent
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New Delhi  — The Central Government has officially announced the amalgamation of Maharashtra Gramin Bank and Vidharbha Konkan Gramin Bank into a single entity, effective May 1, 2025. The move, aimed at enhancing rural banking services and strengthening the financial infrastructure in Maharashtra, comes after consultations with the National Bank for Agriculture and Rural Development (NABARD), the Government of Maharashtra, and the sponsor banks— Bank of Maharashtra and Bank of India.

The newly merged entity will retain the name Maharashtra Gramin Bank, with its head office located at Chhatrapati Sambhajinagar, and will operate under the sponsorship of Bank of Maharashtra.

According to the official notification under Section 23A of the Regional Rural Banks Act, 1976: The authorised capital of the new bank will be Rs. 2,000 crore, divided into 200 crore fully paid shares of Rs. 10 each. The entire subscribed share capital of the two existing banks will be transferred to the new entity. 

The shareholding structure of the new bank will be as follows: Central Government : Rs. 845.19 crore, State Government (Maharashtra) : Rs. 253.56 crore and Sponsor Bank (Bank of Maharashtra) : Rs. 591.63 crore

The merger is expected to enhance operational efficiency, improve credit flow to rural areas, and support the overall development of the regions served by the banks.

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