hdfc: HDFC Bank to open 1,500-2,000 branches every year, says CEO Sashidhar Jagdishan


India’s largest private lender is planning to double its footprint in the next 3-5 years by opening 1,500 to 2,000 branches every year. This was stated by the bank’s MD & CEO Sashidhar Jagdishan in its integrated annual report.

Currently, the lender has over 6,000 branches across India.

“The branch will be digital from a customer on-boarding and transaction/servicing perspective. It will provide the emotional connect and relationship management necessary for offering financial solutions to our customers. These branches will be small in size and will be phygital relationship centres,” Jagdishan said.

Laying emphasis on its importance, the Bank CEO said that the branch network has been a key source of deposit mobilisation and continues to be the driving force for customer acquisition and customer retention.

On the HDFC twins merger

Jagdishan spoke about the need to step into the home loans segment as the merger of the bank with its parent HDFC is currently shaping up. Being one of the main drivers of India’s GDP, he said that housing offers a key growth opportunity.

Talking about the opportunities that will come with the merger, Jagdishan said that the bank can bundle the consumer durable loans with home loans as customers tend to buy new home appliances after purchasing a house.

“The Bank is one of the largest consumer durable financiers in the country. We can easily bundle this with a home loan, as with every home loan, there is a propensity of a customer to take new consumer durables. It is this kind of bundling that will increase margins,” Jagdishan added.

HDFC Bank and mortgage lender HDFC announced a merger on April 4, 2022.

The reduction in regulatory arbitrage between banks and NBFCs is also one the reasons behind the merger, he stated.


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