Indian banks are on a branch addition spree as they look to capitalise on the purple patch in credit growth. While digital banking is growing at a faster clip, banks feel that a physical-plus-online approach is here to stay. The trend is led by private banks. HDFC Bank alone opened 684 branches in the December quarter and aims to add more than 1,500 branches for the fiscal year.
“We are pursuing a branch build strategy and have another 600 branches in the pipeline,” said Srinivasan Vaidyanathan, chief financial officer of HDFC Bank. “The goal is to grow faster than the market to gain deposit share. We are striving to get there by expanding our distribution and getting closer to the customer.”
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