In this ET Interview, Rajiv Lall, MD & CEO of IDFC Bank, speaks on the private sector lender's expectation to grow its retail book aggresively and gain over Rs 13,000 crore in CASA deposits over the next five years:
"It will still be 5-7 years before we can say we have CASA that is 2520%, but on an 80,000-crore balance sheet, you can't have a 40% CASA (current account, savings account) in 12 months. Our focus now is not how much CASA we gain but on how many customers we get."
"...We are acquiring 18,000 new customers every month. We currently have 70,000 customers. Customer acquisition and customer service, the way it is happening is branch agnostic. The number of branches we aim to have per customer will be significantly lower than market.The whole game here is to connect with the customer through channels that do not require your own direct sales force."
"For every branch that we have, we could have a significant number of business correspondent (BCs) outlets like we do with Grama Vidiyal. We could also have BCs who are in the form of kirana stores. Grama Vidiyal has low-cost 309 branches today, and in each of these we will be installing a micro ATM. Once that is done, each of these points of presence will have full banking capabilities. Through the micro ATM customers can get a bank statement, withdraw money, transfer money..."
Read the full article here.