3,884 New Bank Branches Opening: Increasing Preference for In-person Banking
According to the government’s notification, there has been a 100 percent increase in digital transactions in the country in the new year. However, despite the increase in digital services, there has been no reduction in the workforce of banks through branches in India. Instead, banks are continuously increasing the number of branches.
According to banking platform Bank Bazaar’s data, there has been an increase in the number of bank branches in the country during 2022-23. The number of bank branches has increased to 3,884 during this period. This includes government, private, and scheduled commercial banks, excluding rural banks. During the financial year 2021-22, there were 1,54,758 bank branches in the country, which has increased to 1,58,642 in 2022-23.
Why People Prefer to Visit the Bank Branch for Home Loans?
- Many private banks are expanding their reach in small cities and rural areas.
- People prefer to visit bank branches personally for home loans or large borrowings.
- Senior citizens choose online transactions for banking operations.
- People need bank branches for the convenience of the public.
Continuously Opening New Branches by Private Banks
The largest private bank in the country, HDFC Bank, has recently announced its plans to open 1200-1300 branches every year in tier 2, 3, and 4 cities of the country for the next two years. Last year, they had increased the number of branches by 23%. Bandhan Bank has also increased its total number of branches by approximately 500. Other banks have also been expanding their branch network in tier 2-4 cities.
Summary
The number of bank branches in India has been increasing despite the growth of digital transactions. In the financial year 2022-23, 3,884 new branches were opened across the country. Private banks are expanding their reach in smaller cities and rural areas. People still prefer visiting bank branches for services like home loans, as physical branches offer convenience and personalized assistance.
