Commercial banks have substantially slowed the pace of their branch expansion in the State in the past two-and-a-half years, according to a report.
The latest on Bank Branch Expansion revealed that expansion of Brick and Mortar (B&M) Branch is moving at a snail’s pace during 2018-19, 2019-20 and 2020-21, despite the State Government’s repeated approaches to the Union Ministry of Finance for establishment of such branches in uncovered gram panchayats.
As on March 31, 2018, there were 5,108 B&M Branches in the State and the number increased to 5,293 in 2019 and 5,475 in 2020 till date. There are more than 2,000 GPs which are yet to be covered by bank branches, said the report.
ATM expansion is also on slow mode. As on March 31, 2018, there were 6,693 ATMs, which went up to 6,751 by March end, 2019 and 6,768 in 2020 till date.
However, stress is being laid on higher use of digital banking, expansion of Business Correspondents’ network as the commercial banks are eyeing to cut down costs. There were 9,558 BCs operating in the State as on March 31, 2018 and the number went up to 9,897 by March 31, 2019. Now, 11,712 BCs are working in the State.
Digital Banking made it easier for customers to access banking facilities, thereby reducing pressure on the banks to continue opening of new branches.
A senior official said the banking sector reached a certain level of and the focus is shifting to optimum use of various channels, branches, alternate channels such as ATMs and Digital Banking.
So far banking network, which consists B and M Branches, ATMs and BCs, it was 21,359 in number as on March 21, 2018, which rose to 21,941 by March 31, 2019 and 23,955 in the current year till date, revealed the report.