Major advantages or benefits of branch banking can be studied as follows:
1. Large Size
Branch banks are large in size and they are spread all over the country. So, they gain the benefits of large scale operation.
2. Adequate Capital
Branch banks have much more capital than unit banks. So, they never suffer from the limitations of inadequacy of capital.
3. Less Costly
These banks have effective management, sufficient resources and proper system which reduce the cost of operation.
4. Adequate Deposit And Investment
They can collect huge amount of deposit from the public which leads to greater investment capacity.
5. Increase Public Confidence
Services provided by branch banks are far better than the services of unit banking system. It helps to build public confidence and trust.
7. Employment Opportunity
6. Risk-Spreading Capacity
In branch banking system, losses of one branch can be recovered by the profit of other branches.
Branch banks require more human resources to operate in different departments, sections and branches. So, it creates employment opportunity in the country.
Also Read:
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8. Goodwill And Image
Proper and convenience service provided by branch bank helps to maintain goodwill and image of the organization.
9. Efficient Management
Management is very effective and efficient because of specialization, division of labor and highly qualified managers and staffs.
