Indian Bank plans 1525 ultra small branches

Indian Bank is planning to open 1,525 ultra small branches in rural areas across the country. This is part of the bank’s plan to expand its presence in rural areas, said TM Bhasin, chairman and managing director.

Speaking on the sidelines of opening a branch at Pattamangalam in Sivaganga district, Bhasin said the branches would have one clerk, representing the bank, with a laptop and one rural development officer.

The rural branches were not only viable, but could also be profitable, he said, adding these branches would be in addition to 1,965 branches of the bank across the country.

Stating that rural branches were picking up, he said there were more advances being given through the rural banks. Any such branch could break-even in 18 months if the business model was good. According to him, the business in some branches had crossed the Rs 50-crore mark.

With the opening of the Pattamangalam branch, Indian Bank’s branch network in the district has increased to 17. The bank reported a total business of around Rs 1,066 crore, including Rs 683 crore deposits and Rs 383 crore as advances.

The advances include Rs 170 crore towards agriculture, Rs 60 crore for education, Rs 40 crore for SMEs and Rs 20 crore for housing, according to a bank’s senior official from the district.