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Banks in six cities hold 46 percent of deposits
By siliconindia
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Tuesday, 13 January 2009, 19:52 IST
New Delhi: Deposits flow to the city branches of the commercial banks, while branches in rural areas manage to get small deposits only. As per the data compiled by the Reserve bank of India, out of the total 77,069 branches of scheduled banks, only 5,017 banks have a deposit of over 
100 crore, accounting for 57 percent of the aggregate deposits and 59 percent of the gross credit disbursed by banks as on September 2008, reported BusinessLine.
Moreover, 46 percent of deposits of all scheduled commercial banks have concentrated in four metros together with Hyderabad and Bangalore. The share of metro city branches was 38.5 percent in 2003.
Presently, 49,213 branches of banks are in rural and semi urban areas. Though the government takes initiatives to set up more branches in rural areas, these banks can't attract big deposits as the population of most of these regions is below one lakh. All rural and semi-urban branches in India have a 23 percent share of aggregate deposits and 16 percent in gross credit.
Generally, the value of the deposits is purely based on the profile of the client who deposits. "Corporate client accounts are always handled from select branches, mostly based in metros. These branches accept bulk deposits, besides meeting the credit requirements of large public sector undertakings," said a senior public sector bank official.
100 crore, accounting for 57 percent of the aggregate deposits and 59 percent of the gross credit disbursed by banks as on September 2008, reported BusinessLine.
Moreover, 46 percent of deposits of all scheduled commercial banks have concentrated in four metros together with Hyderabad and Bangalore. The share of metro city branches was 38.5 percent in 2003.
Presently, 49,213 branches of banks are in rural and semi urban areas. Though the government takes initiatives to set up more branches in rural areas, these banks can't attract big deposits as the population of most of these regions is below one lakh. All rural and semi-urban branches in India have a 23 percent share of aggregate deposits and 16 percent in gross credit.
Generally, the value of the deposits is purely based on the profile of the client who deposits. "Corporate client accounts are always handled from select branches, mostly based in metros. These branches accept bulk deposits, besides meeting the credit requirements of large public sector undertakings," said a senior public sector bank official.