Mr Hivase was arrested by a team of the Buldhana police and the Nagpur Crime Branch.
Earlier, the bank's peon Manoj Chavan was arrested from Amravati on June 23.
Over the weekend, Mr Hivse and Mr Chavan were suspended for demanding sexual favours from the wife of a farmer.
Chandrapur District collector Nirupama Dange told ANI that the matter has been taken seriously at the administrative level, and would be raised in a fast-track court shortly.
The Maharashtra Police filed a case against the banker and the peon under Section 354 of the Indian Penal Code and various sections of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act.
The manager, who made a call to the farmer's wife, however, spoke in an obscene and lewd manner and demanded sexual favours in return for clearing the loan request.
The peon allegedly told the woman that Mr Hivase will pass the required farm loan and also extend benefits under a special package if she agreed.
The woman recorded the phone conversation and filed a complaint with the local police, they said.
A protest was also staged by Swabhimani Shetkari Sanghatana in front of the bank's Datala branch on Saturday. While the bank was closed, the protestors broke the bank's board and painted its wall black.