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Merger mania haunts banks What is the priority – mergers or NPA reduction? Hesitancy in announcing year-end results Growing volume of stressed assets… Holy or unholy? Payment banks have arrived Cradle of banks to a smart city... Two banks: their jubilees and performances Lacklustre credit expansion A new development bank rising in the east… Cautious and considerate Ernakulam excels... Small finance banks offer high interest rates Big bank merger, bigger expectations Reaching out: is it slowing down? How okay are new banks? Emerging crisis Needed a Banking Atlas Fund healthcare clinics in villages... The paradox: clamour for the Goliath and David Well-lived... LVB- A supermarket of financial services Capital base of regional rural banks raised Thirty more cities seek to become SMART Too big to fail and too small to sail From lazy banking to easy banking Insatiable appetite for credit All that glitters is not gold... Rationalised Reaching the Unreached… Grows Bigger Who is the real beneficiary? A development bank for BRICS Greet Lakshmi the banking robot Small finance payment banks... New bank licences, at last... Indian customers are tech savvy Anytime banking to anywhere banking Drop in SLR- sparing lendable resources Bottomlines shrink, bad loans rise... Bank deposits account for 46.3 per cent of household savings Banking on Risk It’s a war on black money, support it. Stage set for Indian ‘avatar’ of foreign banks Mega merger is on Nothing much can happen…. How ‘secure’ are the secured loans? The collaboration suite of cyber criminals Just 660 days! Target over-ambitious... Cut in repo rate – lower than expected Financial inclusion vs unclaimed deposits Perhaps small is more beautiful than big! One down in private sector United India Insurance - Rs 110 crore losses have been claimed till now due to floods in Tamil Nadu Targets continue to be ad hoc Ferrying digital banking to Lakshadweep Governance in Reverse Gear? Monetary policy continues to adopt dis-inflationary path Growing gainfully Banking in Telangana Drastic decline in asset quality New capitals of Migrant banks Why any time money? Good, bad and ugly Why priority status? Banking overhauling or reorganisation? Aadhaar, niraadhaar and banking Another route for achieving financial inclusion A bank for women, by women Managing NPAs... Smart banking in smart cities Small is ‘more’ beautiful
 
New bank licences, at last...
It took them 19 months to process applications of new banking licences. In the end they cleared 2 out of 25 applications.

Only one new bank in the public sector, Bharatiya Mahila Bank, had entered the banking scene last year. During this period the total number of banks have declined by 10. Eight banks in the private sector have been merged with other banks; and two banks in the public sector have merged with State Bank of India.

The recipients of the in-principle new licences are: Infrastructure Development Finance Co Ltd, a Mumbai-based non-bank financial company that specialises in infrastructure lending and Bandhan Financial Services Pvt. Ltd., a microfinance organisation based in Kolkata.

Within the next 18 months, they are expected to open branches in conformity with the branch licensing policy of the Reserve Bank and also adhere to the credit pattern prescribed. In all probability, initially they may flock to the major cities to establish their branches to gain visibility and also to get a share of the banking business in the top banking centres. Bharathiya Mahila Bank has already shown the way by opening branches in a few state capitals.

All banks have exhibited a tendency to rush to the top 10 banking centres, despite higher cost of operations. These centres are state capitals, with the single exception of Pune. Despite all, the forced spatial expansion of bank branches, 12 per cent of the bank branches are located in these 10 centres. They generate 47 per cent of the total deposits and 60 per cent of the total credit, as on September 2013.

In the next 90 banking centres, which include many state capitals and industrial towns, quantum of credit lent is only 17 per cent of the total, where 14 per cent of the branches are operating.

The next 100 centres could attract only 5 per cent of the total branches and could disburse 3.6 per cent of the total credit. They are all potential centres, not adequately nurtured by the banking sector. Will the new banks care to begin their innings from some of these centres?

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