Idbi Bank In 3-Pronged Retail Thrust In The East

IDBI Bank has drawn up a three-pronged strategy to sweep the retail banking sector in the eastern part of the country. This involves opening up new branches at strategic locations, and a few automated teller machines (ATM), along with new products that will cover the mass market, the class market as well as the broker community.

Plans are to open a new branch at Gariahat, along with two extension counters and three ATM at Howrah, Phulbagan, and Garia, in Kolkata and branches at Kanpur, Benaras Allahabad and Cuttack, along with 17 ATMs, under its hinterland networking strategy.

"We will go for locations where other new generation banks have not entered, and our strategy will be to sweep the market before competition," explained the regional head, retail banking, Gautam Gan.

The bank has taken up an aggressive strategy where it hopes to open 75,000 new accounts in the last three months of the current fiscal. IDBI has very recently launched an instant account option where customers get a cheque-book along with an ATM card, not to mention the savings account number the very day he decides to open an account, without going to the bank. The option will allow account holders to maintain a minimum balance of Rs 5000 in Category-A cities while; customers in other cities will have to maintain a minimum balance of Rs 2,500.

"Although the initial aim will be to open as many accounts as possible, we will segregate the mass market from the class market and will try and sell high asset products, high value loans, mutual funds, RBI bonds, government bonds and insurance to the class market. The strategy is to personally service the high valued clients while equip the extension counters and the ATMs to cater to the mass segment of account holders in the bank," said Gan. "Products like home loan, personal loans, car loans will be targeted at the mass segment," he said.

The bank has also decided to increase its thrust on loans against share securities, and has introduces loans at 60 per cent of the share value for Nifty shares, while allow 50 per cent loans against other categories of shares. "All members from strategic locations in a trader community will be provided cash collection facility, against the normal practice of other banks providing such service only to high-value clients," Gan added.