Axis Bank expanding branches to raise more deposits Deputy MD Rajiv Anand
Rajiv Anand, Executive director & head of retail, Axis Bank
Axis Bank’s plan to expand its branch network is aimed at raising more deposits, said Rajiv Anand, Deputy Managing Director at Axis Bank, on Friday.
During the last quarter of the financial year 2023-24, the bank added 125 branches, totalling 475 new branches for the financial year. This expansion increased its domestic distribution network to 5,377 branches.
“We are working on deposits by expanding our branches and, thanks to the Citibank acquisition, we have salary accounts which will be helpful,” he said.
Axis Bank completed the acquisition of Citibank India’s consumer banking business effective March 1, 2023.
Anand said that the acquisition of Citibank India’s consumer businesses has been helpful in deposit mobilisation due to an increased number of salary accounts.
Reserve Bank of India (RBI) Governor Shaktikanta Das, in his monetary policy statement on June 7, had urged banks to rework their business plans to address the ongoing disparity between credit and deposit growth rates. This gap poses challenges in managing liquidity, repricing, and rollover risks.
“The persisting gap between credit and deposit growth rates warrants a rethink by the boards of banks to re-strategise their business plans. A prudent balance between assets and liabilities has to be maintained,” Das said in his statement.
According to the latest RBI data, banks’ deposit growth was 12.2 per cent year-on-year till May 31, while credit growth was 16.1 per cent. The numbers exclude the impact of the merger of HDFC with HDFC Bank.
First Published: Jun 14 2024 | 5:35 PM IST