 "IDFC Bank snaps up Grama Vidiyal Microfinance")
IDFC Bank, which started operations nine months ago, has set a target to double its profit in the next four years. The bank's profits for the June 2016 quarter stood at Rs 265 crore. The lender also plans to expand its footprints across 10 states and 20 cities by the end of FY17. The bank is currently present in five states and 15 cities.
Addressing shareholders at the company's annual general meeting, Managing Director and CEO Rajiv Lall said: "Given the competitive landscape in the industry and in the country, the bulk of banking system is focused on corporate India."
As much as 45 per cent of the all the lending of all the banks in the country goes to around 300 companies alone. On the deposit side, 80 per cent of the current and savings accounts come from the top 50 cities. Lall said rural areas also offer a huge potential and the bank would cash in on the opportunity.
People in rural areas are frustrated with lack of access to bank branches, huge paperwork involved in opening bank accounts etc.
IDFC Bank will cut down on paper work for these potential customers with the help of technology.
The bank has also partnered with kirana stores for its micro ATMs, which it calls as 'bank in a box', which allows customers to conduct basic banking transactions.
In nine months of its operations, IDFC Bank has acquired 60,000 customers and got 408 points of presence, including 65 branches, 330 micro ATMs, 14 ATMs, and e-lobbies.
Grama Vidiyal Microfinance, a Tamil Nadu-based microfinance company acquired by IDFC early this month, would give 309 points for IDFC Bank.
