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Kerala govt set to get its own bank as HC rejects petitions against ‘Kerala Bank’
Kerala

Kerala govt set to get its own bank as HC rejects petitions against ‘Kerala Bank’

Agency News

The Kerala government will soon form ‘Kerala Bank’ by merging the co-operative banks of all 13 districts except Malappuram district as the High Court dismissed a batch of petitions filed against it. The notification for setting up the bank has been issued and administrator governance in the district cooperative banks would come to an end.

"I believe this indeed is a revolutionary step and will change the face of banking sector in Kerala. Kerala Bank - as the name suggests, it is Kerala's own Bank," Minister for Cooperation Kadakampally Surendran tweeted.

The court granted permission to the Kerala bank after evaluating that its intervention in the merger procedures was not needed. According to government sources, 13 district co- operative banks (DCBs) would be merged with the Kerala State Co-operative Bank for forming the proposed Kerala Bank.

All the DCBs, except the one in Malappuram district controlled by the opposition Congress-led UDF, had approved the CPIM-led Left government's proposal of amalgamation in their respective general body meetings. It is to be noted that the Mallapuram DCB is administered by the Congress-led United Democratic Front (UDF), who had claimed that the setting up of the ‘Kerala bank’ would destroy the traditional cooperative sector. However, the CPIM-led Left-government had claimed that the setting up of Kerala Bank would strengthen the cooperative sector. The High Court today decided that its intervention in the merger procedure was not needed, essentially clearing the way for the formation of the bank.

Surendran had told reporters that the notification for setting up the bank was issued in the evening itself and administrator governance in the district cooperative banks would come to an end.

"Kerala's own Kerala Bank will commence soon. The High Court has dismissed all cases against the formation of the bank.

The process of the legal merger of 13 District Co- operative Banks with the Kerala State Co-operative Bank has been initiated," Kerala Chief Minister Vijayan said.

Earlier, the RBI had also granted its nod for the bank which would be the largest banking network in the state.