RBI guidelines state that 25% of both SFB and Universal bank branches should be in rural areas (< 10000 population). Unfortunately, the SCBs are well above that level. Close to 30% IIRC. Hence, the incremental branches are in Tier - 1. To balance out the unit economics, it is only fair that banks take that route. Can't blame them.
RBI guidelines state that 25% of both SFB and Universal bank branches should be in rural areas (< 10000 population). Unfortunately, the SCBs are well above that level. Close to 30% IIRC. Hence, the incremental branches are in Tier - 1. To balance out the unit economics, it is only fair that banks take that route. Can't blame them.