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Maharashtra Alone Contributes 26% of Banking Business

Bank of Maharashtra had 426 metro branches and 657 rural branches as on 31 March 2015. Metro branches accounted for 62% of its business and rural branches 10.62%. For the State Bank of India, the number of metro and rural branches were 2573 and 6257 respectively. Metro branches constitute 15.8% of the bank’s total domestic branches rural branches 38.3%. In the case of Bank of Maharashtra, metro branches accounted for 56.8% of the deposits and 68.81% of the advances of the bank. In the case of advances, there was yoy growth of 16%. Says Sushil Muhnot, CMD of the bank: “There was a yoy growth of 0.57% in deposits as the bank took a conscious decision to reduce its bulk deposits and replace the same by retail. As the major chunk of bulk deposits was accounted for by the metro areas, the deposits growth recorded by metro branches appears to be less than 1%. The growth in advances could be attributed to the retail advances, MSME and mid corporate, which the bank had focused upon during the year.”

At SBI, metropolitan branches contribute significantly to the bank’s business. Deposits and advances at its metropolitan branches for 2014-15 were Rs 567,559 crore (yoy growth 15.34%) and Rs652,540 crore (yoy growth 7.09%) respectively. According to B. Sriram, MD and GE (National Banking), metropolitan branches contribute 59.27% of the total domestic advances and 38.16% of the total deposits as on March 2015. Corporate group accounts and mid corporate group accounts fall under metropolitan branches and advances to these accounts are directly handled by metropolitan branches, hence advances are more than deposits.


Rural branches accounted for 11.1% of the deposits and 9.68% of the advances of Bank of Maharashtra. There was a yoy growth of 16.53% in deposits and 16.95% in advances in rural branches. Says Muhnot: “We concentrated on opening Jan Dhan accounts during the year in addition to the general growth of deposits in rural branches. The growth in advances was as per the corporate goal of the bank and its focus on increasing its retail base especially agriculture, MSME during the year.”

At SBI, rural branches contribute significantly to its business. Deposits and advances at its rural branches for 2014-15 were Rs196,931 crore (yoy growth 15.6%) and Rs104,825 crore (yoy growth 8%) respectively. Advances of rural branches contribute 9.52% of the bank’s total domestic advances and in respect of deposits, rural branches contribute 13.24% of the total domestic deposits, according to Sriram.


Seven states generated the maximum business for the two banks. Maharashtra, Delhi, Madhya Pradesh, Gujarat, Karnataka, Uttar Pradesh and Telangana together accounted for about 89% of Bank of Maharashtra’s business. Muhnot says business in these states is reflection of the proportion of branches (84%) these 7 states have in the bank’s network of 1880 branches.

In the case of SBI, northern and western states contribute 62% of its business. One of the western states tops the list of business, where the deposits and advances grew by 10% and 5% respectively, says Sriram.

Out of the 7 states, Maharashtra was the topper in terms of Bank of Maharashtra’s business. Current deposits from Maharashtra constitute 79.96% of the total current deposits of the bank. Likewise, the percentages for savings deposits and term deposits are 77.18% and 74.99% respectively. As per RBI data, Maharashtra alone contributed 26.1% of total business for the banking sector in 2014-15.

Share of advances of Bank of Maharashtra in Maharashtra is 61.98%, of which priority sector constitute 70.25%. Within the priority sector advances, share of agriculture is 82.79%, MSME is 60.18% and other priorities 72.88%. Maharashtra also accounted for 76% of the bank’s deposits, 61% of advances and 69% of its business in all. Muhnot says: “Maharashtra contributed the maximum business in 2014-15, with 61% of the branches and 65% of ATMs of the bank located in the state. We endeavour to increase our share in the state further by providing better service and increasing the customer satisfaction. We hope to build on the loyalty of our customers by deepening our retail and CASA business in the state. Out of 1849 ATMs installed in the country, 1207 are in Maharashtra. We have launched Maha e-SBTR (e-Secured Bank & Treasury Receipt) facilities in the state for payment of registration fees and stamp duly. Also we have appointed 2974 BCs here.”

SBI had 1384 branches and 3854 ATMs in Maharashtra. Its branch network in the state garnered domestic deposits of Rs197,630 crore, while it had extended domestic advances of Rs27,2634 crore during 2014-15. Says Sriram: “The share of Maharashtra in the total domestic deposits is 13.29% and in the total domestic advances, 24.76%. The state also accounts for 18.17% in the total business of the bank.”


Chandigarh, Delhi, Tamil Nadu, Telangana and Mizoram were the top 5 state in terms of CD ratio of Bank of Maharashtra. However, it has only one branch in Mizoram but this branch has seen significant increase in advances vis-a-vis deposits.

For SBI, New Delhi topped the list of states in terms of highest CD percentage – 149.39%, followed by Maharashtra, 139.13%, Tamil Nadu, 130.31%, Haryana 125.04% and Telangana 118.94%. States having metro cities have more than 100% CD ratio. Historically, metro states have comparatively more industrial activity. Sriram says their capital towns also host the head offices of the top corporates who in turn use the local banks to avail the various credit facilities leading to higher credit availment. Thus these states have inflated CD ratios.

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