Branch expansion policies and programmes Introduction Shift of

Branch expansion policies and programmes

Introduction Shift of approach after nationalization • In the post nationalization period the it was given particular attention to providing banking facilities in under banked regions and in relatively developed regions at unbanked centers. • After nationalization the commercial banks played an important instrument of development.

Lead bank scheme Nariman committee(1969) RBI Governor appointed a committee of bankers under the chairman ship of F. K. F Nariman in august 1969. v. To prepare a programme for creating adequate banking facilities, particularly in districts and regions.

Recommendations The committee recommended that the banks should be allotted particular districts where they would take the lead in surveying the scope for banking development, particularly expansion of credit facilities. The RBI accepted the recommendations and prepared the lead bank scheme.

Districts were allotted to the state bank group, 14 nationalized banks and 3 private Indian banks. The lead bank was assigned a major development in the district allotted to it.

For knowing the prevailing conditions of the bank it was decided to conduct a techno economic nature survey. • From this collect information's like resource endowment, economic and social infrastructure, pattern of different types of production, possible development schemes and obstacles to development. • The lead bank had identified centers for banking development in the light of this information. •

Progress in branch expansion 1: NUMERICAL INCREASE IN BANK OFFICES Massive expansion of bank offices after the nationalization of 14 banks in 1969. Branches expanded at nearly 2, 400 per year.

2. Branch opening in rural and unbanked areas until the nationalization , there was an obvious urban bias in the dealings of commercial banks. 22. 2%-1969 37. 2%-2011

3. attempt to correct regional imbalances Reduce regional imbalance