Banks in Jharkhand are planning to open 149 additional branches during the 2026-27 fiscal year, alongside setting up new outlets and reactivating dormant banking correspondents (BCs) to expand their network across the state. This initiative was highlighted during the recent State-Level Bankers Committee (SLBC) meeting, where bank officials emphasized the need to increase branch density, noting that Jharkhand currently has 10.51 branches per 1,00,000 population, significantly lower than the national average of 14.1 per 1,00,000.
Recent Branch Expansion
As part of the ongoing expansion drive, banks have already opened 42 branches in the last quarter of the previous financial year. Overall, 92 branches were established across the state during the 2025-26 fiscal year. As of March 31, the total number of bank branches in Jharkhand stood at 3,506, with the State Bank of India leading the count at 693 branches.
Monitoring and Targets
During the SLBC meeting, Anjani Thakur, Director of the Department of Financial Services under the Union Government, stressed the importance of quarterly monitoring of branch openings. He stated, “The performance of banks in opening new branches should be monitored on a quarterly basis, and a report should be presented before the SLBC meetings.” Additionally, the Reserve Bank of India (RBI) has identified 23,828 centers for banking services, including 23,802 with populations below 5,000 and 26 with populations above 5,000. Banks have been instructed to prioritize centers with populations exceeding 5,000.
Activating Dormant Banking Correspondents
In another effort to enhance financial inclusion, banks are reactivating their dormant BCs. A meeting was held with the top 10 inactive BCs to address the issue. The National Strategy for Financial Inclusion (NFSI) has directed banks to prioritize gender inclusion in the BC model, with a target of at least 30% women BCs by 2030.
About the Author
Sanjay Sahay, with over a decade of experience in journalism, primarily covers crime, security, and central agencies, besides reporting on civil courts in Ranchi. He also has a keen interest in education reporting and regularly writes on higher education policies in the state.
