Public sector bank branches in India: a mixed-method analysis of corporate real estate decision-making

What the paper says

Purpose This study aims to examine the building selection criteria for public sector bank (PSB, government-owned banking institutions) branches in India to understand the key factors influencing decision-making and prioritize them through an empirical assessment. This research aims to establish factors which play a crucial role in building selection criteria specific to the banking sector in an emerging economy context. Design/methodology/approach A sequential mixed-method approach was used: content analysis of 49 tender documents of public sector undertaking (PSU) bank branches, semistructured interviews with banking professionals involved in premises selection and a survey-based quantitative assessment using relative importance index methodology. This triangulation approach enabled robust validation of findings. Findings The study identified and prioritized 15 building selection factors, with structural stability and safety norms, fire safety compliance and neighborhood safety emerging as the most critical considerations. Digital transformation has reduced space requirements considerably while increasing emphasis on customer interaction areas. Building selection integrates three dimensions: risk management, operational functionality and strategic business considerations. The selection process demonstrates standardization across PSU banks, with contextual variations across branch types (rural, semiurban, urban and metropolitan). Research limitations/implications The cross-sectional nature of the data and focus on PSU banks limit generalizability to private and foreign banks. Future research could explore longitudinal changes and comparative analyses across different bank ownership structures. Practical implications Findings provide valuable guidance for property owners/developers targeting bank tenants, bank administrators seeking to optimize premises selection and policymakers developing guidelines for banking infrastructure. The research offers an empirically validated framework for evaluating building selection decisions that balances regulatory requirements with operational needs. Originality/value This study addresses a significant research gap by developing a specialized framework for bank branch building selection in an emerging economy context. It extends corporate real estate theory by demonstrating how institutional factors, operational requirements and strategic considerations interact in public sector organizational settings.