Most of the banks have adopted CBS: RBI reports

The Reserve Bank of India has released a report which stated that between September 1999 and March 2009, around Rs 17,897 crore has been spent by 27 public sector banks on computerization and development of communication networks. With this by the March-end 2008 ratio of public sector bank (PSB) branches to achieve full computerization has increased from 93.7 per cent to 95 per cent in March-end 2009.

Also by the March-end 2009 out of 27 PSBs, 15 banks have fully brought their branches under the core banking solution. These banks include Andhra Bank, Corporation Bank, Indian Bank, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank, Union Bank of India, Vijaya Bank, State Bank of India and its six associate banks.

The banks that still have to cover all their branches under CBS include Punjab and Sind Bank (1.1 per cent of the total branches on CBS), Allahabad Bank (9.7 per cent), Central Bank of India (30.8 per cent), and Canara Bank (38.6 per cent).

Under the CBS banks are able to computerize their operations through integration of communication and information technology. This also enables bank customers to operate their accounts from any branch of the bank or via internet and mobile phone.

The report added, “The total number of branches of public sector banks which have implemented CBS increased from 35,464 as on March-end 2008 to 44,304 as on March-end 2009. The process of computerisation of the banking sector, which is regarded as the precursor to other technology initiatives, is almost on the completion stage”.

According to report in 2008-09 banks (public sector, old private sector, new private sector, and foreign) had collectively opened 3,479 branches (4,087 in 2007-08) and 8,862 ATMs (7,701 in 2007-08). Thus by March-end 2009, the number of branches and ATMs of scheduled commercial banks reported to be 64,608 and 43,651 respectively.

However in 2008-09, the percentage of ATM branches opened has increased. As per report it has been 40.2 per cent (35.4 per cent) for nationalised banks; 56.9 per cent (47.2 per cent) for old private sector banks; and 296.6 per cent (279.9 per cent) for new private sector banks. But the percentage of State Bank Group and foreign banks, the number of ATMs installed has declined to 29 per cent (55.8 per cent) and 357.3 per cent (377.4 per cent) respectively.

Out of all the ATMs installed in the country by the March-end 2009, the new private sector banks have the largest share in off-site ATMs (7,480), whereas the nationalised banks had the largest share in on-site ATMs (10,233).