KADAPA: The Central government’s decision to relocate the Andhra Pragathi Grameena Bank (APGB) headquarters from Kadapa to Amaravati has triggered widespread protests across Kadapa and surrounding districts.
Stakeholders argue that the move undermines local employment opportunities and disrupts financial services in the economically backward Rayalaseema region.
The relocation is part of the Centre’s ‘One State-One Regional Rural Bank (RRB)’ policy, aimed at merging Andhra Pradesh’s four rural banks—APGB, Chaitanya Godavari Grameena Bank, Saptagiri Grameena Bank, and Andhra Pradesh Vikas Grameena Bank—into a single entity.
This initiative, developed with NABARD and State governments, seeks to cut operational costs, optimise technology, and enhance efficiency.
Under the guidelines, merged entities must establish their head office in the state capital or the region with the highest business activity.
Established in 2006, APGB’s Kadapa head office manages a business volume of Rs 46,344 crore, making it one of the largest RRBs in India.
Serving districts like Kadapa, Anantapur, and Kurnool, it employs nearly 2,800 staff members and plays a crucial role in financial inclusion for rural and underserved communities.
Protesters, including banking unions and NGOs, argue that shifting the head office to Amaravati will increase operational expenses, reduce accessibility, and alienate rural customers.
They stress that Kadapa’s infrastructure and central location within its operational area are more conducive to fulfilling the bank’s mandate.
Despite protests and appeals to political leaders like Finance Minister Payyavula Keshav and Transport Minister Mandapalli Ramprasad Reddy, the Ministry of Finance has clarified that the decision is irreversible.
Union leaders’ discussions with officials in New Delhi have confirmed Amaravati as the new headquarters.
Leaders from the APGB Officers’ Association have vowed to escalate protests, fearing the move will diminish the bank’s ability to serve Rayalaseema’s underprivileged population.
Stakeholders assert that Kadapa’s strategic role in APGB’s rural outreach programmes should not be overlooked in favour of administrative convenience.