The IDFC Bank hopes retail sector to account for one-fifth of advances and 10-12 percent of deposits by end of current fiscal, as it accelerates customer acquisitions and distribution ramp up to achieve its vision.
The private bank has set out a vision to transform into a mass retail bank in the next five years, by targeting customers in four segments.
Speaking after the company’s annual general meet in Chennai, Rajiv Lall, Founder Managing Director and CEO of IDFC Bank, said: “Our goal is to systematically build mass retail bank.”
“We expect that by March 31, 2017, about 20 per cent (Rs.18,000 crore) of our overall advances to be retail-focussed. About 10-12 per cent of deposits will be from retail,” a media report quoted Lall as saying.
To achieve its objectives, IDFC plans to expedite the customer acquisition process in organic and inorganic routes.
“We are already accumulating or acquiring organically about 15,000 customers a month. This pace will be accelerated significantly. The acquisition deal of Grama Vidiyal Microfinance will close in three-four weeks and it will become a 100 per cent subsidiary of IDFC Bank. With this deal, we will have 1.5 million customers within 15 months of launching the banking operations,” he added,
The bank will also boost its presence to 1,400 touch points across 20 cities in 10 States by end-March 2017.
As of June quarter of this fiscal, it had about 380 touch points, which include 50 branches and 330 micro ATMs.