The Hindu Business Line : ICICI Bank to go slow on branch expansion

The bank believes in the multi-channel approach to the customer. At present, ICICI Bank with a customer base of more than 5 million has 400 branches and extension counters.

The bank is seeing significant share of its transactions coming through routes other than the traditional, branch. "A surprising 10 per cent of customers are opting for Internet banking. The customer is ahead of us and is ready to change,'' said Mr Kamath, speaking at a lecture series organised by Indian Merchants' Chamber and the BJP Commerce Cell here today. ICICI Bank has over 1,000 ATMs, call centre and an Internet banking portal. Mr Kamath observed that 20 per cent of depositors brought 80 per cent of total deposits. This is a phenomenon seen across banks and across sectors particularly in developing countries.

"This leads to a cross-subsidisation for the small depositor since he maintains low balances. It is not that overheads are high in Indian banks or that they are inefficient; they are bearing the extra cost of the small depositor. Our internal analysis has shown that this is true in our case too and efforts are being made to bring down costs through technology,'' he added. Explaining the cost efficiency of technology implementation, he said, "While a branch transaction costs the bank as much as Rs 50, an ATM transaction costs Rs 12, the call centre costs Rs 10 and the Internet the least at Rs 2."