Idbi Bank To Expand Network Of Branches

IDBI Bank has embarked on an expansion spree whereby it will increase its branch network by 15 and automated teller machine (ATM) network by 50 in the next couple of months. The bank has also upgraded its background financial package from Finnacle 6.1 to Finnacle 6.2 an asset package.

Since majority of retail loans are serviced on equated monthly installments the package will provide the bank with the capability of tailoring its products to suit customer requirements and thus offer better service.

"This module is integral to the growth in the asset business which we have envisaged," explained, country head of retail banking Ajay Bimbhet. "We expect a large 85 per cent growth in the retail business this year," he added.

Retail deposit to total deposit at the bank stands at 50 per cent while low cost of deposit to total deposit at IDBI Bank is close to 24 per cent. "This has enabled it to reduce its cost of funds by 310 basis points to 6.4 per cent in the last 18 months," said Bimbhet.

Bimbhet was in town to inaugurate the banks third branch and seventh ATM. Retail assets at present account for 14 per cent of the bank's customer assets, which is expected to rise considerably this year.

At present IDBI Bank has its presence in 63 cities with 90 outlets including extention counters and 248 ATMs. It has created the fourth largest network of ATMs in the country.

Thrust on the retail front at IDBI Bank is on the housing sector and it is in the process of making available housing loan products available at most of its branches in a short period of time. At present housing loan products are available at 12 cities which will be increased to 15 shortly, informed Bimbhet.