Major banks close doors, leaves customers scrambling

VAIBHAV PARWAT

-Public and private sector bank branches reduce by 278 in the State

Aurangabad: In recent years, bank branches of nationalized and private banks in Aurangabad as well as in the State have been closing down, leaving customers especially in rural areas with limited access to banking services. In the last five years, branches of public sector and private sector banks have decreased by 278 in the State.

According to local sources, several bank branches have been shut down in the area due to various reasons, including low profitability, lack of footfall and the increasing trend of online banking. With branches of private banks, this figure decreases to 667.

Speaking on this issue, the manager of a nationalized bank in Aurangabad said, "The closure of branches is a strategic decision taken by the banks after a thorough analysis of the business and its profitability. There are various reasons for the closure of the branches, including declining footfall, lower profitability and a shift in focus towards digital banking. The branches that are being shut down are mostly located in rural areas and have been running at a loss for a long time.”

The villagers and farmers, living in remote areas with limited access to financial institutions have been hit by the decision as the closure has affected the distribution of crop loans and implementation of schemes.

Marathwada and Vidharbha lag behind

The business of banks in eight districts of Marathwada is Rs 1.93 lakh crore, while the business in 11 districts of Vidarbha is Rs 3.40 lakh crore. Compared to this, financial transactions in Pune district alone are up to Rs 6.46 lakh crore. This highlights the significant imbalance in economic affairs in the backward areas.

Condition of bank branches deteriorating

In areas where Bank of Maharashtra is the leading bank, the condition of bank branches is deteriorating. In 2017, where there were 503 branches, their number was reduced to 456.