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One of the successful experiments of the Banking Sector in India has been theformation of the Regional Rural Banks (RRBs). Experts in the field have acknowledged

this fact taking into account the recent enormous progress achieved by the RRBs, whichhave travelled a long way in the last 30 years, on a journey that can best be describedas arduous. Close on the heels of Nationalization, when the focus shifted from Class

Banking to Mass Banking, the RRBs emerged as a low cost Bank designed to cater to

the needs of Small and Marginal Farmers, Rural Artisans, Petty Traders etc., whooperate in Rural Areas.

The initial period was marked with innumerable challenges as the RRBs had to deal with

illiterate, superstitious people, not exposed to the changing world scene. It was indeedan uphill task, as they were expected to play the role of not just a Banker, but also thatof a friend, philosopher and guide, leading them on the path of development.

Malaprabha Grameena Bank, Bijapur Grameena Bank, Varada Grameena Bankand Netravathi Grameena Banks were the four RRBs, sponsored by Syndicate

Bank, in the State of Karnataka. When the above RRBs were established without muchado way back in the 1970/80s, people may not have had the slightest idea about theripple that these RRBs would create in the banking industry and the impact that theywould have on the rural scene. In the formative years, the main concern was to reachout to the rural poor through its strong network of branches. The Banks were playing apivotal role in bringing about a metamorphosis in their respective areas of operationthrough implementation of the various schemes and programmes tailored to suit therequirements of their customers.

As part of the measures which will lead to strong, efficient and vibrant Banking System,the mergers and restructuring phase of the recommendations of the NarasimhanCommittee is now being implemented and thus the four RRBs sponsored by Syndicate

Bank in the State of Karnataka were amalgamated to form the KARNATAKA VIKASGRAMEENA BANK by a Government of India Notification dated 12/09/2005. Thecombined business level of this Bank was Rs.3263.73 Crores with Deposits ofRs.1620.46 Crores and Advances of Rs.1643.27 Crores as on 12/09/2005

The Banks have come a long way from those initial years and after amalgamation theBank has a network of 448 branches cutting across the length and breadth of the ninedistricts forming its area of operation. Surmounting the initial problems of bringingabout uniformity in the working of these Branches after amalgamation, the Bank wasable to record a growth of 24% as on 31/03/2010 in comparison to the figures as on31/03/2009. The Bank plans to achieve a business level of Rs 10000 Crores by the end

of March 2011.

Apart from conducting the Banking business, the Bank is intricately involved in the

social fabric of the people it serves. The activities undertaken are

Recognising that health is a neglected sector among the rural people, the Bank has

been organizing various health camps free of cost. Also in association with the

District Blindness Eradication Centre, it has conducted free Eye Check-up Camps

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followed by cataract surgery and implantation of IOL. Bank also runs a free clinic at

one of the villages in its area of operation.

When the river Krishna was in spate, thousands of families were rendered

homeless. Bank was quick to respond by distributing rugs at a relief camp and

donating a days salary of the Staff to the Chief Ministers Relief Fund.

Responding positively to a news item in the local daily, a village situated close to

the Dharwad town was gifted solar light. This village had no electricity till the Bank

took it upon itself to provide it.

Bank has adopted several balawadies run by the Akshara Foundation in the slum

areas, adopted a rural school for overall development, donated steel plates to the

children of Government Schools at many places, recognises meritorious rural students

by awarding cash prizes etc., etc.

Thus, the Bank has fulfilled the aspirations of the rural people with its totalinvolvement.

To continue as the leading and visible Grameena Bank, acting as a catalyst for thegrowth of Agriculture/Allied and Non-Farm Activities, encouraging customers to pursue

gainful vocation to maximize returns for a decent living, to liberate vulnerable sectionsfrom the clutches of money lenders and finally build a vibrant and pro-active Financial

Institution is the mission of Karnataka Vikas Grameena Bank.