HDFC Bank opens branch in Leh

LEH: The country's second largest private sector lender HDFC Bank on Thursday opened its first branch in Leh, one of the highest locations in the world, and plans to add about 600 branches across the country during the current fiscal.

With the opening of this branch, it has become the first new generation private sector lender to open a branch in this Himalayan region.

Besides HDFC Bank, other banks having operations in the city include State Bank of India, Punjab National Bank and Jammu and Kashmir Bank.

The bank plans to take branch network to 2,700 branches by the end of fiscal 2012, HDFC Bank Executive Vice-President Ravi Narayanan said here.

As of June 2011, the bank had 2,111 branches and 5,998 ATMs spread across 1,111 cities in the country.

Last fiscal, the bank opened 261 branches taking the branch count to 1,986 across the country.

In Jammu and Kashmir alone, the bank intends to add another 32 branches including one in Kargil, and 50 new ATMs as part of strategy to take banking to unbanked, he added.

The bank is giving due focus on North East region and Rajasthan as part of the strategy, he said.

"This is the 20th branch in the state and plans are afoot to take the network to 52 by the end of current fiscal," Narayanan said.

To begin with, the bank would offer basic banking facilities along with third party product sale, he said, adding that the branch would also provide currency exchange facility to cater to the foreign tourist.

"As a leading bank of the country, we are committed to taking modern banking to remote places where it is required the most and make a difference to the lives of people there.

"Opening a branch in Leh is the first step towards what we believe will be a long and mutually beneficial partnership," he added.

The branch was formally inaugurated by J&K State Finance Minister Abdul Rahim Rather.

Speaking on the occasion Rather said, "HDFC bank should look at ways to improve the credit to deposit (CD) ratio in the state... It is a cause of concern."

The CD ratio in the state stands at 35 per cent, much lower than the national ratio of 75 per cent.

Rather said total deposits mobilised by around 34 banks located in the state stand at around Rs 48,000 crore while the advances were at an abysmal Rs 16,500 crore.

Source: EconomicTimes