RBI has allowed banks to set up branches in Tier III to VI cities without prior approval from the apex bank. With this relaxation hitting the banking platform, banks have doubled their plans of expansion.
RBI had permitted scheduled commercial banks in December 2009 that they can open up branches in Tier III to VI cities without prior permission. This has resulted in doubling of number of branches opened by banks this year in comparison to last year.
PNB plans to come up with 550 branches in the country. According to CMD, K.R. Kamath, the bank does not require license for 440 branches as they are located in areas having population less than 50,000.
SBI is also on expansion spree. The bank has spent about Rs. 100 crore to open 286 branches and 2,521 ATMs in the country in the last quarter of the fiscal that ended on March 2010.
According to an executive, IDBI Bank has been planning to open around 300 branches in the country this year which is a great rise against what the bank had done last year.
UCO Bank has plans to open 140 branches this year. The bank would however need licenses for only 89 branches. According to CMD, SK Goel, the bank has plans to increase its market share to atleast 3% as compared to the current figure of 2.6%.