228
31, 1995, of this branch expansion programme 1990-95, no fresh programme
was drawn up on the ground that the subject had to be left to the commercial
judgements of banks (RBI, 1997). Banks were allowed to convert their non-
viable rural branches into satellite offices or closure of bank branches at rural
centres served by two commercial banks. RRBs were allowed to relocate their
loss-making branches at new places even outside the rural areas. What is
more, the programme of opening branches was made privy to achievements
in prudential norms. To quote the RBI’s
Trends and Progress of Banking in
India, 1996-97:
“Banks had been given the operational freedom to open and relocate
branches at semi-urban, urban and metropolitan centres subject to
approval of respective Boards and ensuring track record of profit in the
last three years. The loss-making banks are subject to restrictions on
opening of branches. With regard to opening up a branch in rural areas,
prior approval of the Reserve Bank is required subject to conditions
such as the recommendation from the Directorate of Institutional
Table 9.1: Spread of Bank Branch Network in India
(Scheduled Commercial Banks including RRBs)
Period-end
Rural
Semi-Urban
Total
Number of
Bank
Branches
Per cent
to Total
Number of
Bank Branches
Per cent
to Total
Number of
Bank Branches
Per cent
to Total
December 1969
1,443
17.6
3,337
40.8
8,187
100
March 1991
35,134
56.9
11,566
18.7
61,724
100
1991 Census
March 1995
33,017
51.7
13,502
21.2
63,817
100
March 1996
32,981
51.2
13,731
21.3
64,456
100
March 2002
32,443
47.8
14,910
21.9
67,897
100
March 2003
32,283
47.4
15,042
22.1
68,078
100
March 2004
32,107
46.8
15,252
22.2
68,645
100
March 2005
31,967
45.7
15,619
22.3
69,969
100
2001 Census
March 2006
30,610
43.3
15,471
21.9
70,706
100
March 2007
30,393
41.5
16,352
22.3
73,199
100
March 2008
30,898
39.8
17,695
22.8
77,699
100
March 2009
31,549
38.6
19,021
23.3
81,802
100
March 2010
32,320
37.2
20,601
23.7
86,960
100
March 2011
33,367
36.2
22,725
24.7
92,117
100
March 2012*
35,364
36.8
25,076
26.1
96,059
100
Notes
:
Decline in March 1996 is partly due to reclassification of centres based on the1991 Census.
Similarly, in March 2006, the decline is due to reclassification based on 2001 Census.
Source
:
Reserve Bank of India:
Basic Statistical Returns
, various issues. * RBI’s
Quarterly Handout.
