Indian Bank to open 1,525 ultra small branches in rural areas

As part of its focus on taking banking services to villages, Indian Bank proposed to set up 1,525 ultra small branches in rural areas across the country, a top official has said.

"We will be opening 1,525 Ultra Small Branches comprising one clerk, one laptop and one Rural Development officer," Indian Bank Chairman and Managing Director T.M.Bashin said.

This would be in addition to the 1,965 branches the bank was having all over the country, he told reporters here on the sidelines of a function where Union Finance Minister P Chidambaram inaugurated the bank's branch last evening.

Rejecting the theory that rural branches were unviable, he said they played a key role in freeing small farmers from the clutches of money lenders and bringing the rural population under financial inclusion.

When asked whether there was any specific motive for opening branches in rural area like Sivaganga district, Bashin said Indian bank wanted to focuss on villages.

He said rural branches were picking up and in fact there were more advances being given through the rural banks.

In Tamil Nadu especially, the business in some branches had crossed the Rs.50 crore mark. "This is the potential. Of course it took 18 months to two years for the business to pick up."