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Banks expand network

Banks resumed expanding their network in the year 2021 by opening branches after adopting a go-slow approach in the previous year when the entities were minimising their costs to tackle the Covid-induced economic fallout.

According to Bangladesh Bank data, banks opened 268 branches in 2021 whereas the entities opened 103 branches in 2020.So, the number of total branches of banks increased to 10,939 at the end of December 2021 from 10,671 a year ago.

In 2019, the country’s banks opened 287 branches. At the end of 2018, the number of branches of the banks was 10,281 and the number increased to 10,568 at the end of 2019.

Officials of the central bank said that the banks focused on expanding their network as the country’s business and economic activities came close to normalcy after the jolt in 2020.

Due to the coronavirus-induced economic jolt, most of the banks had to minimise their cost of business and that was why their branch opening dropped sharply in 2020. Along with reducing branch opening, several banks sacked many employees to reduce their cost of operation.

Along with the older banks, the newly approved banks also went for opening branches as part of their initiative to strengthen their foothold for deposit mobilisation as well as to create new customers. Along with expanding full-fledged branch-based network expansion, banks are now-a-days are also focusing on agent banking- and sub-branch-based network expansion.

Appointing agent and opening sub-branch allow banks to strengthen their foothold in a cost efficient model and that has prompted many banks to emphasise appointing agents and opening sub-branches. Of the 10,938 branches, 5,239 branches are located in the rural areas against 5,700 branches in the urban areas. Of the branches, all but only one branch are fully online now. The rest one branch is partially online.

Three years ago, 8,471 out of 10,281 branches were online, 1,189 branches were partly online and the rest 621 branches operated manually.

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