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Private sector DCB Bank plans to double its branch network to over 200 in the next two-three years, with aggressive expansion in smaller towns.
Growing business opportunities, lesser competition and low cost of operations in smaller urban centres are the main reasons for its new strategy.
“We would open branches in towns categorised between tier-II and -VI, with a population of less than a lakh,” DCB Bank MD & CEO Murali M Natrajan told Business Standard here.
Currently, the Bank has 101 branches across 15 states and two union territories with predominant presence in Gujarat.
DCB Bank has bullish plans for Madhya Pradesh, Uttar Pradesh, Odisha, Gujarat, Tamil Nadu, Karnataka and Andhra Pradesh.
“UP is basically an under-penetrated state so far as banking sector is concerned,” he added.
The per capita banks to population ratio in UP stands poorly at 16,000 vis-à-vis the national average of 13,000, following which the Centre had already approved a roadmap to open 3,000 new bank branches in UP by March 2014.
Meanwhile, DCB Bank aims at their full service branches breaking even in 18-24 months.
Until March 2013, the Bank had a balance sheet of about Rs 11,000 crore, which comprised deposits of Rs 8,300 crore.
“In another 3 years, we aim at increasing our balance sheet size to Rs 20,000 crore,” Natrajan informed.
He launched DCB’s maiden branch in UP at Lucknow today, which would be followed up with another branch in Noida soon. “Lucknow is a prime corporate and residential hub offering a great growth opportunity to DCB Bank.”
“We are in the process of finalising other cities in UP to open our branches. Kanpur is definitely on the radar,” he said.
