Leading private lender ICICI Bank has announced two key decisions pertaining to its future branches and ATM expansion.

First, it will expand and set up branches and ATMs wherever there is economic activity. Second, if the footfalls at its branches reduce due to digitisation, it will consider reducing the branch format from large to small.

However, it ruled out the possibilities of cutting down branches and ATMs because of growing digital transactions. At present, about 90 per cent of ICICI Bank’s transactions happen through the digital mode. “We don’t subscribe to the view of cutting down branches or ATMs on account of digitisation. But the nature of business is changing at the branch levels. They are shifting more towards advisory and complex transactions. Because easier transactions are getting done digitally as people don’t come to branches just to do cash or other simple transactions,” said Anup Bagchi, Executive Director, ICICI Bank.

The bank’s strategy will be to set up branches and ATMs wherever business activity emerges. “There are new pockets of activity, and our bank will be there to support,” he added.

Bagchi also highlighted that the bank may not require many large formats due to the drop in customers walking into its branches. “So, if we see footfalls coming down, we will cut the size of the branches,” he added. The bank has seen acceleration of digitisation due to the combined effects of demonetisation and implementation of GST. “There has been a three-fold growth in the bank’s credit flow to MSMEs,” he said.

“GST has made things easier for the bank and its customers. We can sanction credit easily and quickly, as we are now able to estimate revenues and other financial details of a customer. In pre-GST period, tax payments and other things were not clear,” he added.

TN, a bright market

Tamil Nadu holds a strong position in ICICI Bank’s growth. With 10 per cent of its branches (485 in the State) and ATMs (1,525), which is the largest network among the private sector banks in the State, Tamil Nadu has been bringing strong business to the bank.

During this fiscal, the bank aims to grow its retail loan disbursement in the State by more than 40 per cent to ₹13,000 crore, supported by growth in segments such as consumer, home loan, and allied agri loans.

It plans to grow consumer loans by nearly 50 per cent to ₹5,000 crore, while home loan disbursements are expected to grow by 40 per cent to ₹3,700 crore.

The bank also lends significantly to self-help groups (SHGs) in the State. It has cumulatively disbursed loans to over 1.3 lakh SHGs, benefiting more than 17 lakh women. By the end of FY20, it intends to expand its reach to 25 lakh women beneficiaries, with a cumulative loan disbursement of ₹7,000 crore. “Our SHG experience is very good in Tamil Nadu,” added Bagchi.