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

Shifting of banks’ headquarters into metros adds to the growing pressure on the core urban facilities in over-populated cities. In the digital era, the location of a head office is not crucial. New Delhi is one of the most polluted cities. And Bengaluru faces the problems of traffic jams through the day.  It’s time to move away from them. 

Though banking in India has been historically an urban-oriented service, many smaller towns had nurtured quite a few banks. While the growth of banking businesses was faster in metropolitan centres, local banks also have flourished in certain towns. However, there has been a noticeable trend of medium-sized banks migrating to urban centres. It was influenced more by the desire to be seen in the financial or political cities than strictly for business considerations. 

 

Centres accommodating migrant banks...

Among the five top banking centres, four house the head offices of migrant banks. The reasons for migrating are different. The Lahore-based Punjab National Bank decided to shift to Delhi in March 1947, due to partition: Ditto was the case with the Oriental Bank of Commerce, moving from Lahore to Delhi in 1951. The Punjab and Sind Bank migrated from Amritsar to New Delhi. 

Kolkata  has nurtured two local banks: the United Commercial Bank (UCO) and United Bank of India (UBI). The only migrant bank here is Allahabad Bank.  Mumbai has a very strong banking base. Six big banks,  namely State Bank of India, Bank of India, Bank of Baroda, Central Bank of India, Union Bank of India and Dena Bank, are omnipresent in this urban prima. Among them, Bank of Baroda is a migrant from Gujarat. One bank, which has grown outside Bombay in Maharashtra, is Bank of Maharashtra.  It has remained steadfast in Pune.

Chennai has two local banks, Indian Bank and Indian Overseas Bank, and no migrant banks. The case of Bengaluru is entirely different. Though it has seen the growth of two local banks, now only the migrant banks are dominating this city. The century old State Bank of Mysore is on its way out due to its impending merger with SBI.

 

Non-migrant banks

In three of the southern states, there are nine banks in the private sector, operating in smaller towns, which have resisted the temptation of migration. Tamil Nadu has four local banks, which have a record of strong survival. In the temple town of Kumbakonam, City Union Bank Ltd has been serving the local people for over 113 years. In the port-town of Thoothukudi, there is Tamilnad Mercantile Bank Ltd. In Karur, there are two banks, one of which, Karur Vysya is a century old. The other bank is Lakshmi Vilas Bank Ltd, which has been in operation since 1926.

Thrissur in Kerala has the unique distinction of supporting three local banks. The oldest among them is Catholic Syrian Bank, born in 1920. Dhanalakshmi Bank was established in 1927. South Indian Bank, the biggest among them, was founded in1929. Alwaye is the other town in the state, which has nurtured Federal Bank since its inception in 1929.

In Karnataka, the only surviving bank in the private sector, which has not thought of migration, is the 91-year old Karnataka Bank Ltd, based in Mangaluru. n

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com