HDFC Bank to open 675 new branches in rural and semi-urban areas

5 May 2023 , 08:39 AM

According to a Reuters report, which cited a senior bank official, HDFC Bank plans to open more than 675 branches nationwide in semi-urban and rural areas.

The initiative is a part of the bank’s new campaign that targets semi-urban and rural consumers. The largest private lender in India hopes to use it to help it reach some of its Priority Sector Lending (PSL) goals.

A company’s loan book and PSL criteria are related, including lending to the economy’s weakest sectors.

According to Arvind Vohra, group head of retail branch banking at HDFC Bank, at the program’s introduction, the move would bring the total number of branches in these locations to almost 5,000 in this fiscal year.

Based on information posted on the bank’s website, as of March 31, there were 3,811 cities and towns in India with 7,821 branches and 19,727 ATMs of HDFC. About 52% of the bank’s branches are located in rural and semi-urban areas.

The bank hopes to sign up 1,00,000 new customers in these areas through the program.

To facilitate the merger of HDFC Bank with its parent business Housing Development Finance Corp., the Reserve Bank of India (RBI) this month granted HDFC Bank permission to fulfil PSL requirements gradually over three years.

The combined business will need to take into account one-third of HDFC’s loan book at the end of the first year following the merger in order to determine the necessary amount of PSL, the RBI had stated.

For feedback and suggestions, write to us at [e-mail]