Bank Branches

The recent data on deposits and credit published by RBI give us very useful insight into the distribution of banking business across the country.The number of banked centres as on 31st March 2009 were 34636.These centres are served by bank branches.Vast majority of these centres were single branch cetres being mostly rural or semi-urban centres.At the other extreme there were 61 centres having 100 or more bank branches.This type of concentration of bank branches is not a new development in India.
Indira Gandhi nationalised 14 major banks in 1969 and another six banks in 1980 to achieve more inclusiveness in lending and provision of bank services.In the post reform period emphasis shifetd to profitability and consoldaton and as result banks started opening braches in urban and metropolitan centres having more business potential.The number of rural branches which was 1833 in 1969 rose to 35206by March 1991.By March 2009 the number of rural branches declined to 31489.As on 31st March 2009 top 100 centres arranges according to size of deposits accounted for 69.2 per cent of total deposits while top 100 centres arranges according to size of advances accounted for 78.5 percent of total bank credit
Achievement of total financial inclusion is an indispensible necessity for achieving inclusive growth.Now banks provide internent banking,mobile banking etc to bring about financial inclusion without branch.More over business correspondents are also being considerd by banks as per RBI guidelines.All the same a branch is the most indispensible basic requirement in rural areas to bring more and more people within the banking fold.There is also urgent need to implement the recommendations of Rangarajan Committee on financail inclusion.

ARTICLE ON BUDGET-2009-2010

An article on union budget 2009-2010 written by Dr.K.K.Ammannaya has appeared in the Southern Economist dated 1st August 2009.