Calcutta, Feb. 18: ING Vysya, one of the old private sector banks in India, is betting on a branch expansion drive to improve deposit growth rate. The bank plans to open 40-50 branches every year for the next three years, with a focus on non-metro cities.
Brett Morgan, country head (branch banking) of ING Vysya, said total deposits at the end of December 2013 stood at Rs 39,000 crore, growing at only 3 per cent on a yearly basis, while assets were at Rs 36,000 crore, growing at 10 per cent.
“In deposits, we have lagged a little,” Morgan said today, adding that the bank has now set a strategy to improve deposit growth.
“We have prepared a three-pronged strategy. We are developing the branch network to have more retail customers. At the same time, we are looking at more institutional customers along with corporate salary space,” he said.
At present, ING Vysya has a network of 551 branches. Morgan said of the new branches planned by the lender, 50 per cent would be in metro cities and 25 per cent in smaller cities. The remaining 25 per cent will be in the unbanked regions.
According to Morgan, most of the new branches will be located outside the southern region. In Bengal, the bank plans to add three branches next year taking the total to 18.
He said the bank was looking at expanding its agriculture loan portfolio, which at December-end was 15 per cent of its retail asset portfolio.