The Bank was established by amalgamating four regional rural banks sponsored by State Bank of Hyderabad, viz. 1) Sri Saraswathi Grameena Bank, Adilabad 2) Sri Satavahana Grameena Bank, Karimnagar 3) Sri Rama Grameena Bank, Nizamabad and 4) Golconda Grameena Bank, Ranga Reddy (Hyderabad) with an aggregate net work of 215 branches.
The area of operation of the Bank covers the districts of Adilabad, Karimnagar, Nizamabad, Hyderabad and Ranga Reddy districts of Andhra Pradesh. The paid-up capital is Rs.4 crores which is contributed by Government of India, Sponsor Bank i.e. State Bank of Hyderabad & Government of Andhra Pradesh in the ratio of 50: 35: 15 respectively.
Purpose: This loan scheme aims at financing Rythu Mitra Group members.
Eligibility: This is a kind of group financing unlike a personal loan for tenant farmers / oral lessees / share croppers under Rythu Mitra Group.
Quantum of Loan: 4 times the savings of the self help group subject to a minimum amount of Rs.50,000/- is granted as loan for SHG. Higher amounts of loan may be granted based of the activities of the self help group. Similar is the funding in case in this case of group loan also.