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