Patna: Bihar’s two regional rural banks—Uttar Bihar Gramin Bank and Dakshin Bihar Gramin Bank—will be merged into a single entity, Bihar Gramin Bank, from May 1, according to a notification issued by the Union Finance Ministry. With 2,105 branches across 38 districts, the new bank will become the largest rural banking network in the state.
The move is part of the Centre’s broader “One State, One Rural Bank” policy, which has now been implemented in 10 states and one union territory, in consultation with NABARD, respective state governments, and sponsor banks. The aim is to improve the operational efficiency and financial strength of regional rural banks (RRBs).
Until now, Uttar Bihar Gramin Bank operated in 18 districts with 1,027 branches, sponsored by Central Bank of India. Dakshin Bihar Gramin Bank had a presence in 20 districts with 1,078 branches, under the sponsorship of Punjab National Bank. Post-merger, Punjab National Bank will be the sponsor for the unified Bihar Gramin Bank, which will be headquartered in Patna.
The consolidation is expected to reduce administrative overlap and enhance rural banking services, especially in terms of credit delivery and financial inclusion. The Finance Ministry’s notification formalises the merger, paving the way for smoother governance and a single-window approach to rural development financing in Bihar.
