Private sector lender Federal Bank is looking to go slow on branch expansion even as it targets customer acquisition by upping the ante on digital offerings.

According to Shyam Srinivasan, MD and CEO, Federal Bank will look to deploy more customer-relationship managers at its existing branches.

The Kochi-headquartered lender has over 1,250 branches.

The bank has also come up with a host of digital initiatives that include Aadhaar-based savings bank account opening (zero balance) through use of mobile phones (an app); e-payment through smartphones without use of PoS machines; and UPI-based merchant transactions.

“We expect people to be a part of the digital ecosystem and through that we will target new customer acquisition,” Srinivasan said here on Monday.

Credit growth

According to him, the bank is expecting a 20 per cent credit growth in FY18. Between April and December this fiscal (first nine months) it has seen a 32 per cent credit growth. Total business during this period was ₹1.62 lakh crore.

Total deposits were to the tune of ₹92,200 and advances stood at around ₹70,500 crore.

“Given the current growth rate in our credit portfolio, we are expecting to touch about 1 per cent of India’s credit book by March-end (FY17),” Srinivasan said.

The company, he said, may also buy loan portfolios from non-banking financial companies (NBFCs) if opportunities come its way. During this fiscal, it bought around ₹2,000 crore of such loans.

According to Srinivasan, while there are no immediate borrowing plans, it may “seek capital” in case the present rate of growth continues.

Shares of Federal Bank closed at ₹86.90, down 0.29 per cent on the BSE on Monday.

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