The state will soon have more brick and mortar branches across it. Those banks would have people, who will run the branch with one scanner, printer, and cash counting machines. The State Bank of India (SBI) has recently registered around 7 lakh accounts, which were opened under Pradhan Mantri Jan Dhan Yojana (PMJDY), for overdraft. There were 60,000 accounts were opened per day after the PMJDY. Like, the other state, Brick and mortar branches will be set up in West Bengal as well.
“SBI have spotted 7 lakh accounts, who can take overdraft facility. We have also set up brick and mortar branches across the country. It is evident in West Bengal as well,” said State Bank of India’s Chairman Arundhati Bhattacharya, at a banking conclave organized by Ficci.
This overdraft facility, is not only for the purpose of entrepreneurship, but anybody can take it in personal purpose as well, Bhattacharya added.
The people who have belonged to low or mid-low income group would avail this facility. They have only to open their account under PMJDY. Bhattacharya, however, has stressed the brick and mortar branches, which is basically franchise model of the banking. It is apt effort to expand the banking service in the remote villages. She, however, mentioned about the business correspondent model where small loans can be delivered along with insurance and investment, but amount has to be smaller in volume.
She has mentioned, the liquidity coverage ratio (LCR) has to be looked after. It is a biggest risk factor of the bank. The banks need LCR. It should have high quality liquidity assets. She has mentioned that the foreign banks are more depends on market borrowing than Indian banks.
The globalization has created lots of challenge, and the Indian banks have to take those challenges successfully. “We need capital to come in, in the Indian financial system,” she said.