Page 7 - Banking Finance October 2015
P. 7
BANK UPDATE
SBI set to open 250 digital branches China detains 127 bank
State Bank of India, will open 250 digital digital branch model and the learnings officials
branches. Although the lender has keen from them, and will be rolling out an-
on digital branches, its earlier strategy other 250 digital branches this year China has detained 127 officials from
hadn't worked so well, in July,2014 it had that will be on the self-service mode." its banking industry,
started six digital branches - SBI InTouch including presidents
- and planned to take it to 50 in the next For SBI InTouch, the strategy had been and chief of local
one year. However, it made only one ad- to open digital branches in tier-2 and branches, for their
dition since then. tier-3 cities. However, the new ones alleged involve-
are to be opened in urban areas. The ment in corruption,
According to Arundhati Bhattacharya, digital branches will be in urban cen-
the bank's chief, tres where the young population, ones the latest to get netted in President
"Digital provides us who are digitally-savvy are present. Xi Jinping's anti-graft campaign.
such a good me- Among the detained, half of them
dium. On one side Also, the new branches will be smaller were banks presidents or chief of lo-
we have the busi- than the SBI InTouch ones. Considering cal branches, state-run 'People's
ness correspondent that the break-even timing and the cost Daily' reported. They were accused
model, then the of operations are higher in bigger of bribery, embezzlement, illegal
digital medium for branches, the bank has decided to shift lending and other illicit acts, it said.
to smaller digital branches. The digital
new-age customers who are coming in branches will continue to have one or HDFC Bank net profit as-
and then, in between, we have the two bank representatives.
branch model. We have started the cends by 21%
Andhra Bank on expansion mode HDFC Bank
had reported
Andhra Bank plans to add over 450 passbook printing facilities. Over 75 per- a 20.72%
branches to establish a network of over cent of the branches will be located out- growth in net
3,000 branches by March 2016, with side Andhra Pradesh and Telangana as profit at
most of these being located outside the bank expands its presence, he said. Rs.2,695.72 crore for the quarter
Andhra Pradesh and Telangana. ended June 30. The bank had earned
MSMEs (micro, small and medium en- a net profit of Rs.2,233.04 crore in
While addressing media persons on the terprises) will be a focus area for the the April-June quarter of 2014-15.
bank's growth plans, bank, he said. MSME credit has grown The total income of the bank rose
SK Kalra, Managing 20 percent year-on-year. It now stands 26.25% to Rs.16,502.97 crore during
Director, Andhra at about Rs. 22,537 crore. the quarter under review compared
Bank, said in the cur- with Rs.13,070.65 crore in the same
rent year it has re- According to C. Bala Subrahmanyam, period last year, as per the bank
cruited over 600 of- General Manager, Andhra Bank, the sources.
service sector is a fast growing area
ficers and 1,600 clerical staff. within the MSME segment. Hospitality PSU banks can raise
and automobile services are growing
All the new branches will have e-banking at a significant pace within the seg- funds from market
lobby with automated cash deposit/with- ment, he added.
drawal facility, internet banking, and The finance ministry has given the nod
to the PSU's to raise funds from mar-
Federal Bank launches Fed-E-Credit ket for meeting the capital require-
ments. With the capital needs for pub-
Federal Bank had launched its digital loan facility named as Fed-E-Credit, and issued lic sector banks pegged at Rs.2.39 tril-
the first online loan. With the help of this facility, customers can apply for loans lion over the next four years, the gov-
against their fixed deposits using FedNet, the bank's internet banking facility. The ernment has been conscious of the
loans taken under Fed-E-Credit can be closed online through FedNet. The first 1,000 need to strengthen PSU banks in India.
customers taking E-Credit will get interest rate concession quoted the bank sources.
BANKING FINANCE | OCTOBER | 2015 | 7
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