Money & Banking

IDFC Bank sees stakeholders as potential customers

K Ram Kumar Mumbai | Updated on January 23, 2018 Published on October 19, 2015

IDFC Bank is seeing the holders of its bonds and equity as potential customer pools that can be easily tapped into for rapid build-up of its banking operations, going by the overtures it is making to its key stakeholders

The newbie in the banking space has reached out to some of its stakeholders by stating that it would be privileged if they enhance their relationship with it by also becoming a customer of the bank.

In a communication to its bondholders, IDFC Bank said: “You have been a valued stakeholder in IDFC Ltd….Our personal banking operations will be open to you and the wider public in less than 90 days.

“In preparation, we will reach out to you in the coming weeks to share in more detail what you can expect as one of the first personal banking customers of IDFC Bank.”

The private sector bank has already embarked on establishing banking relationship with the employees of its 400-odd corporate clients. It wants to have 1.5 crore customers within five years.

IDFC Bank, which received a universal banking license, along with Bandhan Bank, under the Guidelines on Licensing of New Banks in the Private Sector issued by the RBI in April 2014, commenced its banking operations on October 1, 2015, with 23 branches, 15 of which are in Madhya Pradesh. By the end of the current financial year, it expects to have 60 branches.

The bank said it intends to be a different type of new-age bank, one that is dedicated to outstanding customer service and simple processes.

IDFC Bank has personal banking, business banking and wholesale & corporate banking divisions. It also plans to engage extensively with the rural population under the Bharat Banking segment to provide last mile banking.

At a press meet late last month, MD and CEO Rajiv Lall said his bank will target 10-15 per cent year-on-year (y-o-y) growth in bottom-line every year. Lall added that he would be really disappointed if profit does not clock a 10-15 per cent y-o-y growth.

The bank has kicked off its operations with a loan book of about ₹55,000 crore. Currently, its customer base comprises only large corporates, mostly from the infrastructure space.

Published on October 19, 2015

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