New Delhi: The Union Government, through a gazette notification, announced the amalgamation of Baroda Gujarat Gramin Bank and Saurashtra Gramin Bank into a single entity named Gujarat Gramin Bank, effective May 1, 2025. The decision follows consultations with the National Bank for Agriculture and Rural Development (NABARD), the Government of Gujarat, and the sponsor banks, Bank of Baroda and State Bank of India.

The merger, notified under Section 23A(1) of the Regional Rural Banks Act, 1976, aims to promote public interest and regional development. The new Regional Rural Bank will be headquartered in Vadodara and will operate under the sponsorship of the Bank of Baroda.

The newly formed bank will have an authorized capital of ₹2,000 crore, divided into 200 crore fully paid shares of ₹10 each. Its subscribed share capital will be equivalent to the combined subscribed capital of the two merged banks, which will be deemed transferred to Gujarat Gramin Bank.

The new bank will inherit all assets, liabilities, contracts, and employees of the two merged banks. Effective from May 1, 2025, the Gujarat Gramin Bank will also take over all properties, investments, and documents, including those located outside India.

All existing contracts, legal proceedings, and customer accounts will transfer to Gujarat Gramin Bank, ensuring continuity in operations. Account holders will have corresponding new accounts opened in their names, with balances and interest fully credited. Employees of the merged banks will retain their positions under existing terms and conditions. The new bank will also have the authority to post staff anywhere within its expanded jurisdiction, covering the combined operational areas of both predecessor banks. DeshGujarat