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HDFC Bank will open 1000 new branches this year, Check more details here


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HDFC Bank is gearing up for significant expansion, with plans to open 1,000 new branches in 2024. The aim is to reach a total of around 13,000 branches within the next 3 to 5 years. This information was shared by CFO Srinivasan Vaidyanathan during the bank’s recent earnings call.

Branch Expansion Progress:

In the last twelve months, HDFC Bank has successfully added 908 branches, with an additional 146 branches in the last quarter alone. In 2023, the bank achieved an impressive milestone by opening 1,481 branches.

Importance of Branch Expansion:

Vaidyanathan emphasizes the crucial role of branch expansion in facilitating granular deposit growth. The bank aims to enhance its reach to attract more customers. While the magnitude of branch openings in the future may not match that of 2023, HDFC Bank plans to consistently open approximately 1,000 branches annually to extend its presence across various geographies.

Current Network and Focus Areas:

As of December 2023, HDFC Bank operates 8,091 branches and 20,688 ATMs across 3,872 cities and towns. Notably, 52% of these branches are situated in semi-urban and rural areas.

Liability Relationships and Market Share:

In Q3 FY24, the bank added 22 lakh liability relationships and 74 lakh in the nine-month period ending December 2023. Despite the delay in deposit maturity cycles, HDFC Bank continues to gain 18-20% market share incrementally. There is also an identified opportunity for deposits from existing mortgage customers.

Deposit Growth and Composition:

The bank has observed a robust 27.7% year-on-year growth in deposits, reaching ₹22.14 lakh crore. Time deposits saw a substantial 42.1% increase, while CASA (Current Account and Savings Account) deposits grew by 9.5%. Retail deposits constituted 84% of the total deposits, experiencing a 2.9% quarter-on-quarter growth. Non-retail deposits, on the other hand, decreased by 3.3% as the bank opted for a cautious approach to avoid high-cost deposits.

CASA Ratio and Future Plans:

The CASA ratio, standing at 37.7% at the end of December, provides an opportunity for further growth in CASA deposits. Vaidyanathan envisions working closely with customers to improve this ratio. The current account deposits amounted to ₹2.5 lakh crore, and savings account deposits stood at ₹5.8 lakh crore as of December 2023.

Future Outlook:

HDFC Bank is optimistic about building momentum in deposits throughout FY25. The goal is to secure more granular funding, gradually replacing higher-cost borrowings to support improved margins over time.

One Comment

  1. Before opening new ##### Branches, Bank should take care of Existing Customers service ( Charges , Request required services add or remove) and care to be done for Employee (Mentally n Financial too).

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