State-run banks aim to open over 8,000 branches: FM

Banks also to hire over 50,000 people

India's state-run banks aim to open more than 8,000 branches in the current financial year ending March 2014 and hire over 50,000 people, Finance Minister P Chidambaram said on Wednesday.

Govt plans to directly transfer cash benefits to bank accounts of people under various social welfare scheme over the next few years and is expanding the banking network.

Currently, more than 40% of the 1.2 billion population is not covered by the banking system. Creating more branches would allow Indians, particularly those in rural areas, to get credit at a cheaper rate. Many now have to rely on money-lenders who charge up to 30% interest rates.

The increase in depositors will also allow banks to expand their business and lend to the corporate sector.