Branch Banking

Branch banking is a system of banking in which one of bank carries on its business through a network of branches spread all over the country.

Sometimes branches are opened even in foreign country. the bank is owned by group of share holders and controlled by a single board of directors. there is only a single aggregate of asset and liabilities.

The branches are controlled from a central office known as the ‘head office’ situated in a particular place. the business of each branch is managed by a manager who is appointed by the head office.

The branch manager carries on the business of the branch in accordance with the rules and regulations set by the head office the branch manager can use his discretion in carrying on the business by taking into account the local needs. but to grant large loans, some times he may have to obtain prior approval of the head office. this type of banking system is found in England, Scotland, Australia and India.

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