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Priya Nair

Mumbai , Sept. 13

A RELATIVELY late entrant in the retail banking space, IDBI Ltd is hoping to increase its retail asset and liabilities by 50 per cent this fiscal. It is planning to focus on acquiring savings bank and current accounts, which will provide low cost funds, said Mr Rajan Ghotgalkar, Corporate Head - RetailBanking, IDBI, Commercial Banking SBU. Post the merger of IDBI Bank with IDBI, the Commercial Bank Strategic Business Unit looks after retail banking.

"We are a new generation public sector bank and our strength is a combination of stability and superb technology," he said.

Currently, the bank's CASA (Current Account Savings Account) ratio to total deposits is 55 per cent, which is one of the highest in the industry. Retail deposits currently amount to around Rs 7,000 crore, which the bank hopes to increase to Rs 10,000 crore by the end of this fiscal, Mr Ghotgalkar said.

The bank already offers home loans and loans against securities and has now launched Internet banking and auto loans for its customers.

Some of the new initiatives include trade finance for small businessmen, special offers for salary accounts and facilities to open NRI accounts online. Next on the cards are money remittance services from countries such as the US, Gulf, Australia and Canada and preferred banking for high net customers.

Branch network expansion

IDBI hopes to increase its branch strength to 200 by the end of March 2006 and to 500 by 2008. There will also be a corresponding increase in the ATM network, from 230, at a ratio of 2.5 ATMs per branch.

According to an analyst, the bank has a good share of deposits and the strategy to expand the branch and ATM network and tie-up with other banks for ATM will also pay off. The bank's current retail asset to total assets is at 11 per cent and with the growth planned, it could rise to 18 per cent of the total deposits, the analyst said.

The bank has developed a model called the `Customer Value Management System', which will help the bank identify the potential sale for each customer. This had been launched in Mumbai and would soon be extended to other cities, Mr Ghotgalkar said.

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