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Despite the growing emphasis on digital banking, India’s banks continue to expand their branch networks, more so in semi-urban and rural areas.
Recently Gopal Bhagat, IBA Deputy Chief said, “Banks will miss out on a lot of opportunities if they miss out on physical presence.”
During the second quarter of FY25, data collated by ETBFSI shows that while some public and private sector banks have added hundreds of branches, expansion for some has been in single digits, here is a detailed breakdown of how branch expansion looked like for public and private sector banks.
How did branch expansion fare out for Public Sector Banks?
India’s largest public sector bank, State Bank of India (SBI), continues to hold the largest network, with 22,640 branches as of September 2024, an increase of 60 from the previous quarter.
Bank of Baroda took a more aggressive approach, adding 102 branches in Q2FY25. The bank’s CEO, Debadatta Chand, stated during a recent earnings call that they plan to open a total of 250-300 branches over the fiscal year.
Several other public sector banks showed modest yet steady increases with Central Bank of India reaching 4,528 branches in September 2024, up from 4,517 in June 2024.
Canara Bank expanded to 9,032 branches, adding 35 branches, a steady rise from 8,997 in the previous quarter, and a year-over-year growth from 8,757 branches in September 2023.
Punjab National Bank (PNB) recorded a slight increase, totaling 10,159 branches, up by nine from Q1FY25.
The second-largest addition came from Union Bank of India, which expanded by 82 branches to 8,555 branches as of September, while Bank of Maharashtra recorded an increase to 2,508 branches, adding nine since June 2024.
How well have private banks caught up with branch expansion?
Among private banks, HDFC Bank, the largest private sector lender stood out, adding 241 new branches in Q2FY25 alone, bringing its total to 9,092 branches. Year-on-year, HDFC Bank has added over 1,100 branches, highlighting its commitment to an omnichannel presence.
Axis Bank also recorded an impressive expansion, adding 150 branches in Q2, taking its total to 5,577 branches, a 425-branch increase from September 2023.
Other private banks reported more moderate expansion, ICICI Bank added 26 branches, bringing its total to 6,613, IndusInd Bank expanded its network to 3,040, a year-over-year increase of over 400 branches, as it continues to cater to a wider customer base across India.
Kotak Mahindra Bank increased its branch count to 2,013 from 1,965, showing steady year-on-year growth from 1,850 branches in September 2023.
Banks like Yes Bank and IDFC First Bank also recorded small yet strategic expansions, adding 7 and 55 branches, respectively.
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