Country's second-largest lender ICICI Bank will add 400 more branches and expand its ATM network by another 1,000 in the current fiscal to boost business from retail operations.
Country’s second-largest lender ICICI Bank will add 400 more branches and expand its ATM network by another 1,000 in the current fiscal to boost business from retail operations.
“We believe that a wide branch network is a cornerstone in retail banking. Keeping this in mind, we plan to add around 400 branches this fiscal. We also plan to expand our ATM network by adding over 1,000 ATMs,” Chanda Kochhar Managing Director and Chief Executive Officer of ICICI Bank said in an interaction.
Kochhar said research done by the bank has shown customers value a wide branch network, and the proximity to one’s home or office plays an important role when customers evaluate a bank with which they want to start a relationship.
“It also helps deepen the relationship with the customer as it forms a focal point for a range of products and services like mortgages, other loans and investments,” she said.
ICICI Bank is of the view that branch expansion will continue, although their nature of branches are yet to evolve.
“The branches will become digital and more advisory in nature. In fact, our branches, in their advisory role, source over half of our home loan and new cards customers. Our ATMs are like mini-branches today wherein we provide many banking services in addition to dispensing cash,” said bank’s head.
Besides, automated teller machines (ATMs) also involve services such as Aadhar card updation to utility bill payments, pre-approved loan eligibility and even fund transfers to any bank.
“Today, over a third of all financial transactions are done through ATMs,” Kochhar said.
ICICI Bank had said in the previous fiscal it added 400 branches to its network, which is equivalent to the branch network of a small bank.
As of March 31, 2016, the ICICI Bank said it had the largest retail network among private sector banks in the country with 18,216 branches and ATMs. Of this 4,450 are branches and 13,766 are ATMs.
Advancing with new age requirements, the bank has also successfully weaved digital strategy alongside its brick and mortar model.
ICICI Bank has 110 fully digital and automated ‘Touch Banking’ branches across 33 cities available round-the-clock on all days.
As part of branch automation strategy, the bank said it has deployed more than 1,800 self-service kiosks, which include cash deposit machines and insta banking kiosks, across its branches.