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