Banks forced to consider bit of healthy pruning

NAGPUR, April 18: Liberalisation in the banking sector and entry of foreign banks in the country may force nationalised banks to shut down more than 3,000 branches all over the country soon, in order to stay in the competition.

According to banking sources, in the first phase the banks would make a proposal for closing down loss-making branches and in the second these branches would be closed down. The staff of the closed branches would then be transferred to other branches.

With strong competition from the overseas banks who are providing excellent service to their customers, have high-tech equipment and also earn good profit, the nationalised bank have no alternative but to phase out the old systems and go in for modern techniques.