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

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