HDFC Bank branches will double in next 5 years, with 2000 new branches opening every year

After the merger of HDFC Bank with HDFC, it plans to further accelerate its expansion plans. The bank’s Managing Director and CEO Shashidhar Jagadeesan said that the bank is working on a plan to double its branch network in the next three to five years. Which is equivalent to joining an HDFC Bank in five […]
 


HDFC Bank branches will double in next 5 years, with 2000 new branches opening every year

After the merger of HDFC Bank with HDFC, it plans to further accelerate its expansion plans. The bank’s Managing Director and CEO Shashidhar Jagadeesan said that the bank is working on a plan to double its branch network in the next three to five years. Which is equivalent to joining an HDFC Bank in five years. According to the plan, the bank will open 1,500 to 2,000 branches every year. In a letter to the shareholders, the CEO expressed his views on the merger of HDFC and HDFC Bank. Jagadis said that the proposed merger is going to open up new possibilities. “The opportunities are huge and we are working,” he said. There is a plan to open a new HDFC Bank every five years. Presently the bank has 6000 branches across the country.

More than 1500 new branches will be opened every year

Explaining the reason behind the expansion, the CEO said that the branch density for the population in the country is much lower than that of the OECD countries. This is made possible by the branch banking strategy. Today we have over 6,000 branches across India, and plan to almost double our network by opening 1,500 to 2,000 branches every year over the next three to five years. HDFC and HDFC Bank announced the merger in April, which is expected to be completed in the next year and a half. Jagdish said that the merger will be very beneficial as home loan is the most important financial product in the country and this will greatly benefit the bank in expanding. According to him, the shopping environment has changed today. RERA has ensured greater transparency in the process. The market has seen a decline in inventory due to the correction in prices. Also, rising income means that the home loan EMI burden is now reduced. All this indicates that the home loan segment is expected to witness significant growth in the near future. And this will be the most important part of the development in this decade. For this reason, the bank is also implementing the expansion plan.

The bank had opened 734 branches in the last financial year

The bank opened 563 branches and added 7,167 employees in the last quarter of the last financial year. If we talk about the full financial year, HDFC Bank has opened 734 branches and recruited 21,486 employees. At the end of March 2022, HDFC Bank’s total deposits grew by 16.8% to Rs. 1,559,217 crores. On the other hand, private sector HDFC Bank’s net profit grew by nearly 23 per cent on a standalone basis in the fourth quarter of FY 2021-22 to Rs. 10,055.20 crore. This excellent growth in the bank’s profits is due to the increasing demand for credit in various sectors and reduction in the requirement of financial provision for bad loans.