BANKS
Half of new bank branches opened in tier-1 centres in FY25
Share of private banks in new branches opened fell to 51.8% in FY25 from 65.5% a year ago; domestic bank branches rise 2.8% YoY to 1.64 lakh.
Share of private banks in new branches opened fell to 51.8% in FY25 from 65.5% a year ago; domestic bank branches rise 2.8% YoY to 1.64 lakh.
Banks opened nearly half of their new branches in tier-1 centres during FY25, according to a report by the Reserve Bank of India.
New branch openings, which had accelerated in the previous two years, moderated slightly in FY25.
As of 31 March 2025, the number of domestic bank branches rose 2.8% over the previous year to 1.64 lakh, the report on Trend and Progress of Banking in India for FY25 said.
Barring tier- IV locations, branch expansion slowed across tier-II to tier-VI regions.
Public sector banks were more aggressive on new branch openings in FY25, while it declined in case of private lenders. The share of private banks in total new branches opened fell to 51.8% in FY25 from 65.5% a year ago.
The public sector banks opened 67.3% of the new branches in rural and semi-urban centres, while the proportion for private banks was just 37.5%.
The southern region accounted for the largest number of bank branches, while banking penetration was highest for the northern region at end-March 2025.
