Kerala Bank has been set up to bring the state’s co-operative banking sector under a single roof, as per an official announcement by Kerala Chief Minister Pinarayi Vijayan.
The new Kerala Bank will have the state co-operative bank and the district co-operative banks under its structure. The Left government in Kerala decided to form Kerala Bank after the merger of State Bank of Travancore with State Bank of India.
The formation of Kerala Bank will reduce the three-tier co-operative banking system in the state to a two-tier one.
Earlier, the Reserve Bank of India gave its nod for the formation of Kerala Bank. Of the 14 district co-operative banks, the Congress-led UDF controlled district bank in Malappuram has not so far become part of Kerala Bank.
State Co-operation Minister Kadakampally Surendran said an interim administrative panel was appointed for running Kerala Bank. A new CEO will assume charge next month and deployment of staff of the co-operative banks will be completed by the end of the fiscal, he said.