Module 2: Commercial Banks & Branch Network Trends (Figure 5.6.1)

Commercial banks in Bihar encompass both Public Sector Undertaking (PSU) banks and private commercial banks. Total branch offices of commercial banks in Bihar expanded steadily over the past decade.

Figure 5.6.1: Expansion of Commercial Bank Branch Offices in Bihar (2013–2020)

• 2013: 5,270 branches
• 2014: 5,908 branches (highest annual growth rate of 12.1%)
• 2015: 6,297 branches
• 2016: 6,661 branches
• 2017: 6,844 branches
• 2018: 6,905 branches
• 2019: 7,469 branches
• 2020 (March): 7,589 branches

Rural vs Urban Branch Disparity:

• In March 2020, 50.8 percent of commercial bank branches were located in rural areas, reflecting a decline from 60.0 percent in 2011.
• Private non-nationalised banks display a sharp urban bias: as of March 2018, out of their branches, 386 were located in urban/semi-urban areas and only 73 were in rural areas. This location strategy capitalizes on higher urban purchasing power but hampers financial inclusion.
• National Comparison: As of March 2018, Bihar accounted for only 4.8 percent of all bank branches in India, despite carrying 8.6 percent of the country's population.