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Kerala Gramin Bank (KGB)

Kerala Gramin Bank (KGB) was founded on July 8, 2013, following an official notification from the Ministry of Finance, Government of India, which mandated the amalgamation of the North Malabar Gramin Bank and the South Malabar Gramin Bank. The consolidation was part of a national initiative to reduce fragmentation among Regional Rural Banks (RRBs) and enhance operational efficiency and financial inclusion across the state of Kerala. KGB operates as a Regional Rural Bank (RRB) with its headquarters located in Malappuram, Kerala, and is sponsored by Canara Bank. As a Regional Rural Bank, its ownership structure is tripartite: the majority stake of 50 percent is held by the Government of India, the Government of Kerala holds 15 percent, and the sponsor, Canara Bank, holds the remaining 35 percent.

The bank's significance in the Indian financial system, particularly within the state of Kerala, is substantial as it is the sole Regional Rural Bank operating across all 14 districts of the state. With a mandate focused on rural upliftment and poverty alleviation, KGB plays a crucial role in promoting financial inclusion and socioeconomic development by extending credit to vital sectors such as agriculture, Micro, Small, and Medium Enterprises (MSME), and housing. The bank functions as an organ of the government, providing the primary financial services of a public sector bank, and has been cited as the largest Gramin Bank in India as of 2018, contributing significantly to the economic advancement of Kerala's rural and underserved communities.