State-run banks aim to open over 8,000 branches: FM

India's state-run banks aim to open more than 8,000 branches in the current financial year ending in March 2014, Finance Minister P Chidambaram said on Wednesday.

India plans to directly transfer cash benefits to bank accounts of people under various social welfare scheme over the next few years and is expanding the banking network.

Also Read: Bearish on PSU banks, rupee weakness to persist: Religare

Currently, more than 40 percent of the 1.2 billion population is not covered by the banking system. Creating more branches would allow Indians, particularly those in rural areas, to get credit at a cheaper rate. Many now have to rely on money-lenders who charge up to 30 percent interest rates.

The increase in depositors will also allow banks to expand their business and lend to the corporate sector.