Starting October 1, consumers will get one more option in the highly competitive banking space. IDFC Bank will commence its operations with 23 branches and a balance sheet size of about ₹60,000 crore after the central bank on Friday granted it a banking licence.

The non-banking finance company said it received the licence on July 23.

IDFC was one of the two entities from among a list of about 25 banking licence aspirants to get “in-principle” approval from the RBI to set up a bank in April 2014.

Bandhan Financial Services Private Ltd, the other entity, was granted a banking licence last month. Bandhan Bank is set to commence operations from August 23.

According to Rajiv B Lall, Vice-Chairman & Managing Director (designate) of IDFC Bank, the new bank will operate three verticals – corporate banking, which will leverage existing corporate relationships to expand retail banking, rural banking and urban consumer banking. IDFC Bank will have fewer branches than others because it will rely more on technology to connect with the customers, Lall added.

In transitioning into the proposed bank, IDFC has bulked up its treasury book to build the statutory liquidity ratio (investment in government securities) book. The treasury book as on March 31, 2015, was ₹27,651 crore — a 201 per cent jump over ₹9,181 crore a year ago.

A total of 650 job offers were made in FY15 and of that 320 employees joined the firm by March 15. The equity share capital of IDFC Bank will be held approximately 53 per cent by IDFC FHCL, a 100 per cent subsidiary of IDFC and approximately 47 per cent by the shareholders of IDFC.

IDFC shares closed 2.58 per cent up on the BSE at ₹157.30 against the previous close of ₹153.35.

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