Money & Banking

Indian Bank plans more e-branches

Anjana Chandramouly Parvatha Vardhini. C BangaloreFeb. 22 | Updated on November 10, 2017

Mr T.M. Bhasin, Chairman and Managing Director, Indian Bank   -  Business Line

With huge savings in transaction cost in its proposed e-branches, Indian Bank plans to open 10 such branches by March 2012.

“Our focus is on reducing the transaction cost and opening more e-branches in future so that people can get 24-hour service,” Mr T.M. Bhasin, Chairman and Managing Director, Indian Bank, told Business Line. According to him, transaction costs in these e-branches would come down by 60 per cent. These e-branches will do away with manual intervention and thus bring down the cost of operations.

“Our first two e-branches are ready now and they will be inaugurated along with our new head office premises in Chennai early next-fiscal,” he said. The bank has also identified Mumbai, New Delhi and Bangalore for these branches, which would be opened by September this year. “We hope to take the number up to 10 by March 2012,” he added.

As against a conventional branch that would require about 1,500-sq-ft space, he pointed out that the e-branches would be set up in 400 sq ft. These branches will offer an ATM with facilities to both withdraw and deposit cash, and a cheque drop machine that will also generate the photo-copy of the cheque along with the automated receipt. Besides, kiosk services for internet banking will be offered too.

The total cost of setting up these branches will be about Rs 11 lakh, which is “very nominal because it is capitalised, and gets recovered in two years’ time,” explained Mr Bhasin. “The e-branches will be manned by one staff member initially to guide customers,” he said.

The bank will also be moving into its new 1.85-lakh-sq-ft new premises in Chennai early next fiscal. Plans are afoot to convert a part of the existing head office premises into the IT hub of the bank, said Mr Bhasin.

Published on February 23, 2011

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