While the competition in India’s banking space is set to increase with new bank licences being allowed by Reserve Bank of India, Mumbai-based DCB Bank (formerly Development Credit Bank) has set its sights on the smaller towns and villages to tap the untapped wealth there. 

A top bank official said they will more than double their branch network, mainly in the tier-2 to tier-6 towns (having population less than 5,000).

“The banking industry has witnessed a fair amount of stress in the last 12-24 months, mainly because of weak demand. We see good potential in towns with lesser population. In the two-three years, we plan to more than double our branch network in the country from 117 currently to 250-300,” Murali Natrajan, Managing Director and Chief Executive, DCB Bank told Business Line . Over half the new branches will be opened in the less populated centres.

According to Natrajan, the bank, which currently employs over 2,500 people, including marketing staff, will create new job opportunities for around 8-10 people per branch in the coming two-three years. 

Even in the competitive environment, the bank has set a target to double its total business to around Rs 24,000 crore in next two-three years from Rs 12,000 crore now. The growth will happen through smaller cities.

The bank will increase its presence in the southern and north-eastern parts of the country, as it has a strong presence in the Northern and Western regions.

Of the 300 new branches, more than half will be in Tier-II and small cities and rural areas, the Chief Executive said.

“Our focus will be on retail and SME advances. We have seen good growth in these segments, while we are making a cautious move for the mid-corporate segment, where there is still some stress,” said Natrajan.

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