This is because the state offers a good non-resident Indian (NRI) deposit base which, in turn, helps the banks fulfil their 3:1 ratio for urban/semi-urban branches requirement.
The ICICI Bank recently set up a branch at Panjim in Goa, while the TimesBank is planning to unveil one before the year end.
Centurion Bank, which has its registered office at Goa, already has as many as four branches in the beach-rich state.
A senior official at ICICI Bank said Goa provides a substantial non-resident Indian deposit base. "These deposits are low cost and are stable funds," he stated.
Moreover, there is no cash reserve ratio requirement (CRR) on these deposits. Within the next two years, the ICICI Bank hopes to garner Rs 20 to Rs 25-crore worth of retail deposits through the new branch.
The managing director of 20th Century Finance Corporation-floated Centurion Bank, A Sen, said that Goa proves to be a good place for fulfilling the ratio for urban/semi-urban requirements. Centurion Bank has mobilised Rs 50 crore worth of deposits through its four branches in one year at Goa.
While the Centurion Bank has already set up 11 branches, it has plans to open 10 more branches before March 1997. One of the other semi-urban centres that the bank is targeting is Noida near New Delhi.
The Reserve Bank of India has set a ratio of one semi-urban/rural branch for every three urban/metropolitan branches being set up by the new private sector banks. This ratio has to be attained within the first three years of operations of the new banks.
At present TimesBank has 11 branches and it is planning to open more branches at New Delhi and Chandigarh before March 1997. A senior official of the bank said the saving potential in Goa is good due to which a number of newly set up banks are going there.
The RBI has indicated that banks should avoid overconcentration of their branches in metropolitan areas and cities.
