Public sector banks drastically cut down on branch expansion in 3 years

State Bank of India too has reduced the pace of opening new branches, after its associates banks were merged with it in 2017-18

Public sector banks (PSBs) have substantially slowed the pace of branch expansion in the past three years on higher use of digital banking, expansion of business correspondents’ network and need to cut down costs. While 4,000 branches were opened in 2015, the number dropped to 3,334 in FY15 and 3,334 in FY16, 2,185 in FY17 and just 824 in FY18, according to data in Parliament. 

With more emphasis on financial inclusion, especially in unreserved and underserved areas, shift has been on getting business correspondents. 

Digital banking has made it easier for customers to access banking facilities, thereby reducing pressure on banks to