HDFC Bank to double network in 5 years

According to HDFC Bank's managing director and CEO SashidharJagdishan, the bank plans to establish 1,500 to 2,000 branches every year, or one new HDFC Bank every five years, to double its network of branches during the next three to five years.

In his letter to shareholders in the annual report 2021–2022, Jagdishan outlined the rationale for the merging of HDFC with the HDFC Bank "The proposed merger gives the future a whole new dimension. We think there is a vast runway, and every five years we might be able to add an HDFC Bank."

He added that the bank plans to open 1,500 to 2,000 branches annually in order to roughly double its branch network over the course of the following three to five years. It currently has more than 6,000 branches in India.

The Housing Development Finance Corporation (HDFC) and its subsidiary HDFC Bank announced a transformational merger in early April of this year. The merger is anticipated to be completed in between 15 and 18 months. Further, the bank's improved capital position following the merger allows it to take larger exposures to well-known corporations and support the development of the nation's infrastructure, according to Jagdishan.

Due to the underutilization of financial services in the nation, he claimed HDFC Bank already had a sizable opportunity. "The proposed combination gives the future a completely new dimension." Regarding its plans to raise capital, the lender stated that it will issue long-term bonds through a private placement in order to raise up to Rs 50,000 crore.