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