The HDFC Bank will focus on expanding its business in Andhra Pradesh, where hectic economic activity is likely with proposed new industries and building of a new state capital.
The private bank will decide on the number of new branches depending on the pace of the economic activity in the new state.
"As the government expands, we will not be far behind. We will also expand business in a healthy manner," executive vice president and head, branch banking, Madhusudan Hegde told IANS here.
The bank recently opened branches around Vijayawada-Guntur where the new state capital is being built. "Wherever there are opportunities, we will go," he said.
The bank, which opened its 150th branch in Telangana on Tuesday, has 107 branches in the neighboring state. The number will go up to 112 with the opening of five more branches in seven days.
HDFC's business of Rs.11,000 crore in Andhra Pradesh is low compared to Telangana but the bank also has more loans in Andhra. The credit deposit ratio in Andhra is very high at 170 percent.
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Talking about Telangana, Hegde said their overall business in the state is Rs.31,000 crore. The credit deposit ratio is 105 percent. "It's because of Hyderabad that our deposit and business figures look good in Telangana," he said.
HDFC started operations in Hyderabad in 1997 but expanded to Andhra region of the then undivided Andhra Pradesh only in 2000 with the opening of a branch in Visakhapatnam.
He said the bank had done very well in Vijayawada, Kakinada, Rajahmundry and Nellore in Andhra.
The bank achieved a milestone in Telangana on Tuesday with the opening of 150th branch. The branch has been opened in Kondapur in Hitec City, the IT hub.
Hegde pointed out that HDFC has 23 branches in Telangana where no other bank has its branch.
As of December 31, 2014, HDFC had 3,659 branches and 11,633 ATMs in 2,287 cities and towns in the country.
"While the banking industry grew by around 11 percent in advances and 13 percent in deposits, we have grown by at least 6 to 7 percentage points higher than the industry. If economy improves we are expecting our progress to be much better," he added.