BRANCH BANKING: ALIVE, KICKING AND GROWING

EVEN AS DIGITAL SERVICES EXPAND, BANKS ARE AGGRESSIVELY ADDING BRANCHES TO IMPROVE REACH AND ENHANCE DEPOSITS.

- ARNIKA THAKUR

DIGITAL transactions grew more than four times between 2018 and 2022. But this hasn’t deterred customers from visiting bank branches. Bankers say even though a significant number of account holders are using UPI for smaller transactions, they still visit a branch for human touch. “Visiting a bank branch is a ritual for Indian customers. They, especially senior citizens, plan for it, get ready for it. It’s like a social outing. Technology enabling transactions doesn’t mean the customer doesn’t want conversations,” says Ravi Narayanan, group executive and head, branch banking, retail liabilities and product, Axis Bank. The Mumbai-headquartered bank reported a 3.31% rise in number of branches in FY23. The number of branches run by private sector banks grew 8.7% from 14,893 to 16,189 in FY22, according to S&P Global Market Intelligence. “Fixed deposits, term deposits, recurring deposits, SIPs (systematic investment plans), have gone digital, but when it comes to home loan or (large) investments, people still want to meet physically. Even when customers want to borrow for their business, they want more physical interaction,” says Shanti Ekambaram, whole-time director, Kotak Mahindra Bank.