Determinants of Bank Offices Shah H. M.*, Rajyaguru A. J.** *Aahyapak Sahayak, Pri. M. C. Shah Commerce College, Gujarat University, Ahmedabad, India **Associate Professor, Department of Statistics, VNSGU, Surat, India Online published on 7 November, 2013. Abstract Today banks play a vital role in the economy of any Country. By opening branches at various unbanked and under banked regions of the economy, banks provide opportunity to save to the public. The higher the number of the bank branches in the economy, the higher will be the amount of deposit mobilization ceteris paribus. Rapid economic development pre suppose rapid expansion of commercial banks. Initially, the banks were conservative and opened offices (branches) mainly in Metro Politan cities and other major cities. But after nationalization of banks, the expansion of bank offices gained momentum. Using the relation between population size, per capita income and other important variables, an attempt has been made to fit the model for bank offices for Gujarat, some other selected states and India at national level using the data for the period 2000 to 2008. For majority of the states and India, log reciprocal model is found to be appropriate with X2= per capita NSDP at current price and/or X3 = Population Density per square km as explanatory variables. It can be inferred from the fitted models that initially in every state/national level, number of bank offices increases at an increasing rate and then it increases at a decreasing rate. Looking to the R2, VIF and DW statistic as well as the standard errors of the models, it can be said that further improvement of the models is needed/possible, which can be considered as further study. Top Keywords Bank offices, per capita NSDP, population density, log reciprocal model. Top |