do india need large number of small banks or small number of large banks?

Answer 1

small number of large banks. now a days automation is given importance. hence state bank of india is contemplating to merge with associated banks. like that several banks are planning merge.hence small number of large banks are preferred.

Answer 2

A large bank of small numbers.

Answer 3

india is vast, diverse, complex. Lets combine icici bank and sbi to make one large bank. do you think this will improve the banking services, Answer is no. Help reach unbanked areas in deep rural areas? Answer is no. Lets assume there are four such large banks. Do you think anything will change? Very little will change because all these large banks will compete in common markets of metros, urban and semiurban areas (to that extent it improve the services somewhat), leaving aside the vast majority of people in the rural areas. Like most big banks now in India, these hypthetical large banks will expand within the existing markets and internationally (like icici bk is doing now).

Someone may argue that big players will improve efficiency and its benefits will be passed on to the consumers. This is true, however only a limited small % of people will be benefited compared to the larger majority in the whole country. Check stats to know the numbers.

Hence india needs a combination of large banks and many smaller (yet strong) banks.

Answer 4

What India needs is a few Large Banks, like the SBI with the right attitude to serve the poor and encourage them to save and grow and to utilise the savings to multiply the wealth accumulated through hard work. Equally they should be caring to train the Lower middle class to balance their ambitions for possessing the luxuries of the middle class with a determined effort to save and grow to real Middle class status so that they don't get caught in the Debt trap in imitating higher level life styles.
Another important thing the Indian Banks need to do is to learn the work style of Banks like HSBC, RABO BANK etc, passing on information on Business opportuunities in various countries where they operate to clients of the Banks in other countries.

Answer 5

Large number of small banks that will give mini loans to get people started in business or farming

Answer 6

india needs large no of small banks for they can compete between themselves and consumer will have choice to reach them if u have small no of large banks they will come into cartel and deal clients in their own fashion. there are adverse effects too for example what was the affair when credit cards were introduced before how a client was abused and harassed now what is the senerio this became possible for all cards came under brand head like visa not under bank heads thou the name of bank tags to it it is sbi visa card or sbi master card like how it is icici visa or master card
on contrart if the governence is by few companies the adverse effect is to get a loan or to make transaction the minimum amout to be kept loan intrest rate etc will be high and rigid where as if number of banks r more for them to rotate funds they will become flexible and will offer more benifits like how it is now most of the bankers come to ur home at the time of ur convienence and sanction loan unlike before where bankers used dodge us

Answer 7

particularly the government has no objective to take safeguard farmers of South India! they do no longer supply godowns to FCI in the event that they offered the crop. so that they dont purchase it. right here the Andhra pradesh godowns are allocating to Punjab fci employer! And next they do no longer even provide the MSP which replaced into set by making use of government in straightforward terms you may get around 500 right here for a quintal And those millers cheat each time asserting that rice had it must be levied to government all that crap So the farmers in Andhra Pradesh rather in east godavari and west godavari are desperate to supply crop trip