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