HDFC's branch reign may be short

HDFC Bank, whose amalgamation with Centurion Depository Financial Institution of Punjab will see it maneuver past ICICI Depository Financial Institution in figure of branches, could again fall back by March-end.

ICICI Bank, which have 400-plus subdivision licenses in its custody currently, is said to be planning an aggressive expansion. Moreover, the bank's joint managing manager and main fiscal military officer Chanda Kochhar had in mid-January told deoxyribonucleic acid Money, "In the adjacent three calendar months ICICI (Bank) is planning to revolve out more than than 400 subdivisions across the state in improver to its 955 subdivisions and extension counters currently. Additions will also be made to the 3,687 ATMs."

As a result, by March end ICICI Depository Financial Institution could have got 1,355 branches, vis-à-vis the 1,148 subdivisions for the HDFC Depository Financial Institution (754) and Centurion Depository Financial Institution of Punjab (394) combine.

"ICICI Depository Financial Institution have set its branch-opening process on fastrack after the amalgamation of CBoP into HDFC Depository Financial Institution was announced. ICICI Depository Financial Institution have about 425 licenses in manus and is rolling out speedy apparatuses in grade two and grade three cities," an industry beginning said.

Getting subdivision licenses in a metropolis of 1s pick is becoming difficult, state analysts. "HDFC Bank's subdivision web would be up by 50 per cent... as it would acquire clasp of 390+ subdivisions of CBoP. We believe this would be the chief intent of purchasing a depository financial institution in Republic Of India as getting entree to ramify licenses have go much more than difficult," said a February 22 study by Deutsche Depository Financial Institution on the then proposed merger.

The CBoP subdivisions that HDFC Depository Financial Institution would acquire clasp of are in metroes and metropolises where HDFC makes not have got a strong presence. The new subdivisions of ICICI Bank, meanwhile, are coming up in grade two and grade three cities, said the source.

The geographical locations of the subdivisions were not disclosed.

"Generating concern from new subdivisions in grade two and grade three metropolises takes time. So it will be about two old age by the clip ICICI depository financial institution can bring forth sizeable concern from its new branches," an analyst who did not wish to be quoted told deoxyribonucleic acid Money.

Sources also point out that HDFC Depository Financial Institution had chalked out an aggressive roll-out program of around 250 branches, which currently it have licenses for. But the program have been set on the backburner to settle down the amalgamation of CBoP, which too have acquired licenses for around 20 branches.

ICICI Depository Financial Institution also throws more than assets per subdivision than the HDFC-CBoP combine. One ground for that could be ICICI's joust toward corporate business relationships and its place loan portfolio, which for HDFC Bank, is managed by parent company HDFC.

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