The branch network re-structuring exercise, which Oriental Bank of Commerce started last year, has given it a scope to open 79 branches across India, according to a top official of the bank.
As part of the exercise, the bank had last year hoped to club a redundant branch with other branches.
“We use those licences to areas where we don't exist. By doing that, we have been able to get some business out of those areas, which we were not able to access through our earlier set-up,” Mr Nagesh Pydah, Chairman and Managing Director, Oriental Bank of Commerce, told Business Line.
One such branch was opened at Malleswaram in Bangalore. In an area where practically most banks have already located their branches, he hoped to “enjoy the last mover advantage”, and create a differentiation through customer service.
On a pan-India basis, the bank is looking at “opening about 79 branches only out of the re-jig process. It's a good opportunity for us. In some places, the results have been remarkable,” he said.
The bank targets a business of Rs 30 crore-35 crore a year from these branches.
“If they are able to record business of Rs 25 crore in the first year, it is good enough for us,” explained Mr Pydah.
This year, Oriental Bank of Commerce has about 96 pending licences, which he said would take the total branch network of the bank to over 1,800 branches.
Keywords: branch network re-structuring exercise
