Ratnakar Bank to double branch network in 2 years

Private lender Ratnakar Bank aims to double its network in the next two years by setting up 100 more branches, predominantly in the semi-urban and rural centres.

“We have to create a capacity to capture the larger banking market,” Managing Director and Chief Executive Officer Vishwavir Ahuja told Business Standard. After raising Rs 700 crore from a host of investors including Housing Development Finance Corporation, Cartica Capital and Norwest Venture Partners, the bank has now intensified its growth plans. It will use a part of the capital it raised in early February to finance its branch expansion.

Ratnakar Bank currently has 98 branches and employs around 800 people. The bank brought a new management team in July 2010, which comprised of former bankers from Axis Bank, Bank of America, Citibank, ICICI Bank, Yes Bank and other financial institutions.

“Historically, the bank’s growth plans had not fully captured the market potential. Now, over the last several months, this process has been accelerated,” says Rajeev Ahuja, head of strategy and financial markets.

Since January, the bank has added 10 new branches. Ratnakar Bank’s chief executive said most of the new branches will be in the small towns and rural centres, which offer greater business opportunity to the bank. “We will be going for branch expansion, especially in the tier-III towns and cities. We have actually identified 50-60 such locations. You should see another 100 branches in the next two years. In the coming year, we may be able to do 40, in terms of execution,” he said.