As a result, the branches of scheduled commercial banks increased from 8,262 in June 1969 to 69,471 in March 2006. The average population per branch office decreased significantly from 64,000 to 16,000 during the above period, with the share of rural branches increasing from 22.2 per cent in June 1969 to a little over 51 per cent in March 1998.
Lending to the priority sectors was increased to the mandated target of 40 per cent. Specialised Regional Rural Banks were set up in 1975, especially in backward and tribal districts to cater to the needs of the weaker sections amongst farmers and non-farm small businesses entrepreneurs.