HDFC Bank set for rural push

The country’s second largest private sector lender, HDFC Bank, plans to capitalise on its acquisition of Centurion Bank of Punjab and deepen its presence in rural India.

“It is our intention to enter rural areas and we intend to use a combination of business correspondents and telephone banking,” HDFC Bank Managing Director Aditya Puri told shareholders at the lender’s annual general meeting. He added that the bank would be entering into an agreement with a partner to set up a delivery model for telephone banking in rural India. HDFC Bank will open 150-175 branches in the current financial year, according to Chairman Jagdish Capoor. The lender has 1,725 branches as of March 31.

“Out of all our branches, 29 per cent are in rural and semi-urban areas,” Capoor added. When asked if the bank was considering any acquisitions, Capoor said if there was a good candidate the bank would certainly take a look at it.

Puri said the bank never took on new acquisitions, until it was able to bring its earlier acquisitions to its own level of efficiency. “We ensure that we are able to maintain service quality and earnings capability in our earlier acquisitions,” Puri said. In response to questions by shareholder on the classification of the bank as foreign-owned, Puri said they were a “foreign entity” but an “Indian bank”.