ORGANISATION STUDY Branch Expansion: Initially, the banks were conservative and opened branches mainly in metropolitan cities and other major cities. Branch expansion gained momentum after the nationalization of major commercial banks and the introduction of the Lead Bank Scheme. Table No. 01 shows the progress of branch expansion of commercial banks: Branch expansion of all commercial banks: Table No. 01. As on
Total No. of
Rural
Rural
Branches Population
June 30 1969
Branches 8,260
Branches 1,860
as % of the total. 22
bank office 63,800
1991
60,650
32,750
54
14,150
2003
66,640
32,270
48
15,000
per
Deposit Mobilization: Planned economic development, deficit financing and increase in currency issue have led to increase in bank deposits. At the same time, banks have contributed greatly to the development of banking habit among people through sustained publicity, extensive branch banking and relatively prompt service to the deposit mobilization, due partly to the expansion of a network of bank branches and partly to the incentives given to savers. The trend of increase in deposits and credit of scheduled banks is given in Table No. 02.
PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 BHANDARKARS’ ARTS & SCIENCE COLLEGE, KUNDAPURA
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