IndusInd to add four branches in Gujarat

With the recent merger of Ashok Leyland Finance Ltd (ALFL) with IndusInd Bank, 132 of the total 168 branches of ALFL will be converted into full fledged IndusInd Bank branches.

The bank also plans to open four branches in Gujarat. Bank officials said in Ahmedabad that in the first phase, that is to be taken up over the next 8 months, 51 ALFL branches will be converted into IndusInd branches. IndusInd has a network of 62 branches, 12 extension counters and 80 offsite ATMs in the country. It has recently secured a RBI licence to open 13 more branches in the country.

"With the 132 branch network of ALFL and 13 branches that will be opened shortly, our branch network will exceed 200 very soon," IndusInd Bank executive V-P C V Bijlani said.

Commenting on the Gujarat network, the official said the bank has eight branches in the state, to which four more will be added shortly. These will come up at Gandhidham, Jamnagar, Rajkot and Saurashtra, as the bank plans to spread its reach to Saurashtra region.

"Gujarat will thus have among the highest number of IndusInd Bank branches in any state," said Bijlani.

He added that the business in Gujarat is also very encouraging. The deposits of the bank in Gujarat are worth Rs 500 crore. The combined advances of ALFL and IndusInd Bank are worth Rs 600 crore.

"With about Rs 300 crore advances of IndusInd Bank and an equal amount of ALFL, we are in a comfortable position in Gujarat," the official said.

He added that the merger with ALFL is an ideal situation for shareholders of both ALFL and IndusInd Bank. ALFL has expertise in the retail segment, while IndusInd has an edge in corporate banking.

IndusInd, which recently opened its second overseas representative office at London after Dubai, now plans to convert the office into a full fledged branch.

"It is slightly cumbersome to open an overseas branch and so we will have to form a subsidiary, that will be governed by regulations of the Bank of England. We are basically looking for business from Indian associations and companies based overseas that are looking to raise funds," said Bijlani.