The State Bank of India group, including the State Bank of Hyderabad, has 1119 branches. The old private sector banks have very little presence in many of the districts: 234 branches, whereas, the new generation banks have 378 branches, though bulk of them are concentrated in Hyderabad and Rangareddy districts. The five gramin banks operating in the new state are viable and are earning profits, without carrying the baggage of accumulated losses. Total resource base of the banking sector in the state would be of the order of Rs. 265,536 crore. The volume of advances would be Rs. 249,982 crore, based on the September 2013 data. Hyderabad would be the single banking centre from Telangana, finding a place among the Top 100 banking centres.
Bifurcating a Gramin Bank?
Andhra Pradesh has at present five gramin banks after the initiation of the process of mergers in 2006. There were 16 of them in 1987, before amalgamations. All the 23 districts in the state have the presence of gramin banks. Consequent to the bifurcation of the state, there could be the need for bifurcating one of the gramin banks in the state. Seemandhra having 14 districts would be left with three gramin banks.
Andhra Pradesh Grameena Vikas Bank is the biggest among all the five banks. It has 638 branches spread out in 9 districts in the undivided state.
One or two Gramin Banks?
The Government of India, the major shareholder of all gramin banks, has been propagating the idea of having only one or two gramin banks in each state with a view to enhancing their viability. This is reflected in the process of mergers initiated during the recent years. As a result, the number of gramin banks has come down from 196 to 57 as on date. States like Kerala, Chhattisgarh, Haryana and Uttarakhand have single gramin banks. Among the smaller states in the north-east, six of them have one gramin bank each.
In view of this policy, if Seemandhra may have only two gramin banks.