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