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.

BUDGET LINE -Article of Ammannaya

An article on budget by Dr K.K.Ammannaya was published in Business Line dated 22nd June 2009.Please see page 2 of this issue

NEW Artcle by Ammannaya

A new article titled ''An Alternative Growth Strategy for India''by Dr.K.K.Ammannaya was published in Bhavan's journal of 15th June 2009.Please refer to pages 16 to 23 in this issue.

Union Budget 2009-2010

The union budget 2009-2010 recently presented by Finance Minister Sri Pranab Mukherjee is indeed based on long range vision of growth and with an eye firmly focussed on inclusiveness in the growh process.The budget aims at tackling two major challenges,namely global recession and economic growth.The budget has given top-most priority to the task of reducing the adverse impact of global economic down-turn.The second task sought to be achieved by the budget is to step up the rate of economic growth in order to get the economy back to the 9 percent growth path.

Consolidation of Banks

Consolidation of banks is very vital from the points of view of building up volumes of business,achieving economies of scale,enlarging capital base,enhancing competitive strength,and creating and enhancing value for stake holders.So far the left parties opposed bank consolidation in India tooth and nail and as result the government could not go ahead with any plans in this regard.The people of India have totally disapproved the stand of the left and marginalised left parties.Now they are very weak and their voice is very feeble.At this stage the government must take up the task of consolidation of banks with all seriousness and go full steam ahead in this regard.
Alongside consolidation of banks there must also be efforts at consolidation of banking laws in India.Banking laws which stand scattered in several Acts must be consolidated and made available at one source through the enactment of a comprehensive banking legislation in India.Let us hope that the UPA government will take up this task with all enthusiasm and seriousness at the earliest.

Another New Article in Kannada

Another new article of Dr.K.K.Ammannaya has appeared in Udyamadarshi Kannada magazine,May 2009 issue.