RRB amalgamation splits West Bengal govt, banks

KOLKATA: The amalgamation of regional rural banks (RRBs) in West Bengal has taken a curious turn. While it is learnt that the state government has agreed to clear the proposals submitted by Uco Bank and United Bank of India (UBI), differences have cropped up between the banks and the state government over finalising the headquarters of the new rural banks after amalgamation.

There are nine RRBs in West Bengal. Five are sponsored by UBI, three by Uco Bank and one is under the Central Bank of India. Sometime back, the Kolkata-based UBI and Uco Bank had approached the state government with the proposal of amalgamating the RRBs under their fold.

Now, UBI has proposed Berhampur (Murshidabad) as the headquarters of the new rural bank after amalgamation. The state government run by the Left parties, however, has serious reservations about the choice of Murshidabad, especially Berhampur, since it is known to be a Congress stronghold. The government has unofficially suggested Kolkata to be the headquarters of the new setup, sources close to the development said.

The RRB unions also prefer Kolkata over Berhampur. “Forget the politicking, by sheer business logic, Kolkata is by any standard a better choice,” said SK Bhattacharya, general secretary of All India RRB Officers’Federation.Meanwhile, Uco Bank has proposed Howrah as the headquarters of its new RRB after amalgamation. However, to the state government, Bardhaman is the preferred choice.