Public Sector Bank Branches to Expand Soon Across India

Good news for customers of banks! Public sector banks are coming closer to your residential colonies, opening shortly in your neighbourhood. During the period between 2011-12, public sector banks added 5000 branches in the country for the benefit of over seven crore customers across the country.

Of these 5000 branches, 2,500 bank branches were recently added by just five banks – State Bank of India, Punjab National Bank, Bank of India, Bank of Baroda and Indian Overseas Bank. The public sector banks have been on a branch expansion spree over the past few years causing the increase in the number every year.

They opened up about 1,500 branches in 2006-07, while in 2008-09, they opened nearly 2,400 branches. Currently, over 65,000 public sector bank branches are available in India. This number can shoot up this year if banks start expanding their branches without delaying expansion plans. Many banks such as Allahabad bank, Corporation Bank plan to open 250 and 300 branches respectively in this fiscal year.

Recently, the Reserve Bank of India (RBI) relaxed the norms for bank branch licensing and encouraged banks to expand branches in tier-2 cities and towns. It is observed that, only 13,000 customers can access an average bank branch service, indicating the demand for services available. According to the recent reports from RBI, nearly 60% of the total population across the country does not have access to banking services.