RBI approves merger of 13 District Cooperative Banks with Kerala State Cooperative Bank

The Reserve Bank of India has given its final approval for the formation of 'Kerala Bank', which involves the merger of 13 District Cooperative Banks (DCBs) with Kerala State Cooperative Bank.

Reserve Bank of India. (File Photo | PTI)

The Reserve Bank of India has given its final approval for the formation of 'Kerala Bank', which involves the merger of 13 District Cooperative Banks (DCBs) with Kerala State Cooperative Bank. Malappuram DCB, which is controlled by the UDF has chosen to stay away. Kerala Bank, once it comes into being, will be second-biggest bank in the state after the State Bank of India in terms of deposits. Express looks at Kerala's banking history and the current trends.

The Reserve Bank of India (RBI) has given its final approval for the formation of ‘Kerala Bank’, which involves the merger of 13 District Cooperative Banks (DCBs) with Kerala State Cooperative Bank. Malappuram DCB, which is controlled by the UDF, has chosen to stay away. ‘Kerala Bank’, once it comes into being, will be the second-biggest bank in the state after the State Bank of India (SBI) in terms of deposits. TNIE looks at Kerala's banking history and the current trends.

Mergers & Liquidation

Here are some of the prominent banks, which are either merged or liquidated over the last several decades. 

1. Travancore National Bank (TNB) was established in 1912 in Thiruvalla, which was merged with Quilon Bank (established in 1919) in 1937 to form TNQ bank. The bank was wound up in August 1938 following a court order due to liquidity issues.
2. Palai Central Bank, founded in 1927, was once the 17th largest among the 94 scheduled banks in India. Kerala High Court ordered the liquidation of the bank in 1960 following a petition from the Reserve Bank of India.
3. Kottayam Oriental Bank founded in 1926 before it was merged with the State Bank of Travancore in 1961.
4. Lord Krishna Bank, established in 1940. It was merged with Centurion Bank of Punjab in 2006. The Centurion Bank of Punjab was later merged with the HDFC Bank in 2008.
5. Bank of Cochin, founded in 1928, was merged with SBI in 1985.
6. Catholic Bank, which came into being in 1938, was merged with Syndicate Bank in 1961.
7. Travancore Forward Bank, established in 1929, was amalgamated with SBT in 1961.

Nedungadi Bank

Nedungadi Bank, established in 1899 in Calicut (now Kozhikode) when there was only five banking establishments in the entire country. Started by Appu Nedungadi, the bank was registered only in 1910. Nedungadi Bank ceased to exist after the Punjab National Bank took over it in 2003.