Kerala to get its own bank soon

The Kerala government's long pending dream of setting up its own bank, by merging the district co-operative banks, was set to become a reality with the High Court dismissing a batch of petitions filed against it.

Minister for Cooperation Kadakampally Surendran said the setting up of the bank opens up a huge potential for the development of the state.

"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," 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 Left government's proposal of amalgamation in their respective general body meetings.