INTRODUCTION TO KGSG BANK

Mahatma Gandhi , the father of nation, once said "Eighty percent of the Indian population lives in villages and most of them live below poverty line. We should therefore formulate such plans and schemes which are beneficial to weakest person of the society also. If the poor people are not brought into mainstream of development, the total development of India will not be possible." Our Prime Minister Late Mrs. Indira Gandhi initially nationalized 14 commercial banks with the intention that these institutions would float credit in social activities and rural development. But after 06 years of nationalization she realized that nothing concrete could be achieved. She then brought in an ordinance on 2nd October,1975 (Date of Birth of our beloved Bapu and Lal Bahadur Shastri ji) to set up the Regional Rural Banks with the object to accelerate the development of rural economy. The aim was to attain upliftment of the poor, the neglected and the down trodden people by channelising the flow of credit to the rural areas.

The Regional Rural Banks were local in structure and were based at the District level. The Lead Banks were given the responsibility of sponsoring these RRBs. The paid up capital was subscribed by the central government, sponsoring bank and state government in the ratio of 50:35:15.In a slow but steady process 196 RRBs were established in 615 districts across the country. The ordinance of 2nd October,1975 came to be recognized as Regional Rural Banks Act,1976 and there were 15155 branches up to 20th July,2009 with approximately 69000 employees serving the country.

Union Bank of India sponsored 4 RRBs in India of which 3 were in the state of Uttar Pradesh. These three Banks were Kashi Gramin Bank, Gomti Gramin Bank and Samyut Kshetriya Gramin Bank. Samyut Kshetriya Gramin Bank, with its headquarter at Azamgarh was established on January 06, 1976. It covered 4 districts (Azamgarh, Ghazipur, Mau and Ambedkar Nagar) with a network of 168 branches and 5 extension counters. A total of 929 staff members served a population of approximately 9092458 people covering 20 tehsils and 56 development blocks. By the end of March, 2005 there were deposits of Rs.11443674 thousand with 61:39 demand term ratio. The total advances of SKGB stood at Rs.2736661 thousand with CD ratio of 23.91% basic. The bank issued 13422 Kisan Credit Cards to farmers by the end of March, 2005.

Gomti Gramin Bank was established on 30th March, 1981 with its Head Office at Jaunpur. It had 84 branches covering 6 tehsils and 21 blocks. There were 376 employees by the end of March, 2005. The Gomti Gramin Bank set the following vision "Our endeavor: Integrated Development". The bank mobilized deposits worth Rs.5471912 thousand with a demand term ratio of 51:49. By the end of March, 05, the outstanding advances were Rs.1693384 thousand. The bank made a continuous effort to improve credit flow by meeting its financial targets to provide credit to target as well as non target group of borrowers. By the end of March, 05 the CD ratio of the bank was 31.69% and it had issued12558 Credit Cards to the farmers.

Kashi Gramin Bank headquartered in Varanasi was established on 28th July 1981 with a view to cater the needs of rural and downtrodden people of Kashi, the oldest city on the earth. By the end of March, 2005 Kashi Gramin Bank was able to cater to the needs of 65520 customers and had an outstanding of Rs.1971694 thousand of advances. With 82 branches and 368 employees the Bank was able to inculcate the habit of saving among rural and semi urban masses since it had taken its banking services to their door step. By March, 2005 the Bank had deposits worth Rs.5212553 thousand. In 2004 the Kashi Gramin Bank was rated as one of the top SIX RRBs in the country.

With the onset of Globalization and financial reforms all over the world, self dependency became the keyword in banking industry. This scenario put pressure on RRBs also which were hitherto concentrated on social banking. Banking industry was very intensively growing and RRBs had to face extreme competitive environment as soon as they tried to capture the non target group customers. India was rapidly sailing on the tides of financial reforms. The banking industry was trying to make big bases by way of consolidation. There were no choices left to Government of India than to consolidate the RRBs. In this process the government of India embarked upon a process of amalgamation of RRBs which were adjacently situated and sponsored by the same sponsoring bank. Due to this process of amalgamation the number of RRBs has reduced from 196 to 83 with 15155 branches which cover 615 districts of the country. 68476 employees are serving the rural as well as urban mass of the country.

In this process Kashi Gramin Bank, Gomti Gramin Bank and Samyut Kshetriya Gramin Bank sponsored by Union Bank of India in U.P. were amalgamated by GOI vide its notification No.SO-1264(E) on 12th September 2005. Thus came into existence the

"Kashi Gomti Samyut Gramin Bank"

On 12th September 2005, the bank owned a fund of Rs.23250 Crore with deposits to the tune of Rs.2137.87 Corer. Advances of Rs.648.27 Corer and a CD ratio of 30% as on 12th Sep'05. By the end of FY 2010-2011 KGSG Bank was having a total business of 5898 Crore with a 4586.90 Crore of deposits and 1311.31 Crore of advances with CD ratio of 30% and Net profit of Rs.11.36 crore. The bank also achieved the landmark of converting its 100 percent branches on Core Banking Platform. This was a historical event in banking industry that a RRB had achieved such a technical up gradation of its services and that too in a record time. The bank has taken the membership of BCSBI (Banking code & standard Board of India).The bank is also blessed with the achievement of launching Rupay ATM Card.

Branches 1)Region Wise

Azamgarh Bhadohi

Gazipur Jaunpur Varanasi

2)District Wise Ambedkar Nagar Azamgarh Bhadohi Chandauli Gazipur Jaunpur Mau

TECHNOLOGY In the wake of ongoing changes in the financial sector and trends which indicate a move towards globalization and liberalization of the Indian economy, the market environment in the country has undergone a major change.

Reforms in the financial sector and entry of private and foreign banks along with new generation technology have changed the face of Indian banking sector. To respond to the aforesaid challenges, RRBs of Eastern U.P. sponsored by Union Bank of India have been amalgamated and a bigger and stronger bank has emerged.

Embracing technology has become the need of the day. Technology is fast becoming an integral part of banking business. The bank has taken steps to keep pace with the technological changes.

Core Banking Solution

The Bank has been constantly endeavoring to leverage the advancements in Information Technology and Communication network with a view to :

Introduce new techno-centric products Enhance customer convenience Increase efficiency in operations Build up multiple delivery channels

The Bank has embarked upon massive technology based transformation through technology process in the form of implementation of Core Banking Solution. The Bank has engaged M/s Wipro, a leading service provider in IT enabled services for providing end-to-end solution for networking. It is backed by "Finacle" software support from M/s Infosys Technologies Ltd. The Core Banking System bundles a host of customer friendly services.

The Bank has its Data Centre at Prabha Devi, Mumbai and the Disaster Recovery Site at Bengaluru to ensure business continuity. All the branches of the bank are under CBS. Pursuant to the above technological initiative we are focusing on development of new business models that will include formulating new products

and services for serving the banks customer better. Efforts at revitalizing the entire rank and file of the Bank, to give sharper focus to customer satisfaction and delight are also underway.

Following facilities / Services are being provided to the banks customer

Access to customer account from any of our branch. Account Portability RTGS & NEFT - Fund transfer facilities ATM - Inter operable ATM cards to our customers who can use the ATM of Union Bank as their own ATM machine

Rupay enabled ATM Cards acceptable on any ATM in India.

Many more services and products are on the anvil.