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Tag: ICICI Bank

  • ICICI Bank Q4 PAT up 17% on strong loan growth, steady asset quality

    ICICI Bank Q4 PAT up 17% on strong loan growth, steady asset quality

    ICICI Bank’s profit after tax grew 17.4 per cent on year and 4.2 per cent on quarter to ₹10,708 crore in Q4 FY24 on the back of strong loan growth and controlled asset quality.

    Total advances increased 16.2 per cent y-o-y and 2.7 per cent q-o-q to ₹11.8-lakh crore, of which domestic loans were at ₹11.5 lakh crore — 16.8 per cent higher on year. The retail loan portfolio was up 19.4 y-o-y and 3.7 per cent q-o-q to ₹6.6-lakh crore, comprising 54.9 per cent of total loans.

    In the earnings call, Executive Director Sandeep Batra said the bank continues to monitor and recalibrate the product mix of the retail portfolio based on risk parameters such as ticket size and bureau score. As such, loan growth for the segment has moderated to 32.5 per cent in Q4 from 37 per cent in the previous quarter, which is in-line with the market.

    On the corporate side, sequential loan growth was muted due to repayments by some large PSU NBFCs, however, as a whole the bank remains “happy” with growth in its focus segments, Batra said adding that while government spending continues to lead capex growth, the bank hopes to attract more private capex in FY25.

    Business banking loans rose 29.3 per cent on year, SME loans by 24.6 per cent, rural portfolio 17.2 per cent, and domestic corporate loans by 10.0 per cent.

    ICICI Bank’s outstanding exposure to NBFCs accounted for 6.5 per cent of total loans at around ₹77,000 crore as on March 31. This was lower than ₹78,000 crore a quarter ago and about ₹82,000 crore in the year ago period.

    Other metrics

    Gross NPA ratio declined to 2.16 per cent on March 31 from 2.30 per cent a year ago. Net NPA ratio declined to 0.42 per cent from 0.44 per cent in the previous quarter and 0.48 per cent in the previous year.

    Net interest income (NII) increased 8.1 per cent y-o-y to ₹19,093 crore for the reporting quarter. Net interest margin (NIM) was 4.40 per cent lower than 4.43 per cent in the previous quarter and 4.90 per cent a year ago.

    The NIM for FY24 was 4.53 per cent, which compares similarly to 4.48 per cent for FY23, Batra said, adding that the objective continues to be maximising profitability. The bank will continue to reprice deposits and price its lending opportunities in an “appropriate way”, as a result of which margins should remain range-bound in FY25.

    “Going ahead, we do expect RBI to undertake a shallow rate cut and we will see how growth pans along the course of the year,” Batra said, adding the fall in margins has off-set some of the benefits from the strong loan growth.

    The bank incurred a treasury loss of ₹281 crore in Q4 due to transfer of negative balance of ₹340 crore in Foreign Currency Translation Reserve related to the Offshore Unit that is proposed to be closed.

    Deposits grew 19.6 per cent y-o-y and 6 per cent q-o-q to ₹14.1-lakh crore. CASA deposits grew 10.1 per cent to ₹5.9-lakh crore, with average CASA ratio of 38.9 per cent. Term deposits were up 27.7 per cent on year and 1.6 per cent on quarter to ₹8.2-lakh crore.

    Batra said that the bank will not be “raising deposits at any cost” but expects to continue to see sustained deposit growth.

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  • Institutions vote for ICICI Securities-ICICI Bank merger, retail investors resist

    Institutions vote for ICICI Securities-ICICI Bank merger, retail investors resist

    Shareholders of ICICI Securities have, on March 27, approved the proposal for the company’s merger with parent ICICI Bank. However, a majority of retail shareholders voted against the proposal.

    The result showed that 71.89 per cent of shareholders voted for the delisting. While 83.8 per cent of institutional investors voted in favour of the delisting, only 32 per cent of non-institutional retail shareholders favoured it.

    For the delisting and merger of a subsidiary with its holding company, regulations mandate at least two-third votes in favour of the proposal.

    As per the proposed agreement, every 100 shares of ICICI Securities will fetch 67 shares of ICICI Bank. Following the merger, ICICI Securities will become a wholly-owned subsidiary of ICICI Bank, which currently holds 75 per cent stake.

    Foreign and domestic institutional investors account for 16.68 per cent of ICICI Securities’ share capital, while non-institutional public shareholders hold 8.55 per cent stake, as of December 2023.

    The go-ahead comes amid complaints by retail shareholders that ICICI Bank employees were allegedly ‘canvassing’ incessantly for their votes on social media, besides using repeated calls and messages to “influence the voting decision”.

    ‘Loss for minority shareholders’

    In a recent note, Quantum Mutual Fund — a shareholder in both ICICI Securities and ICICI Bank —had said it would vote against the delisting as the swap ratio was detrimental to the interests of minority shareholders. It estimated the loss for unit holders across two schemes at ₹6.08 crore.

    “The current swap ratio values ICICI Securities at a 30-77 per cent discount to its other listed peers based on consensus earnings forecast for fiscal year ending March 2024,” the fund house had said, adding that, with the IPO price as benchmark, the share swap ratio would have been 1.9 shares of ICICI Bank for every share of ICICI Securities, at a premium of 183 per cent to the current offer.

    Reacting to the shareholder approval, shares of ICICI Securities fell over 3 per cent in early trade today at ₹719.20. On March 27, the stock had closed at ₹741.70.

    Shares of ICICI Securities listed on April 4, 2018, at ₹432, at a 17 per cent discount to the IPO price of ₹520. A reverse merger at that time would have entailed a swap ratio of 1.65 ICICI Bank shares for every share of ICICI securities, at a premium of 146 per cent to the current offer.

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  • Banks’ capital requirements to rise on higher risk weights, loan rates to increase

    Banks’ capital requirements to rise on higher risk weights, loan rates to increase

    The capital requirement of banks is expected to increase by 5 per cent, or ₹84,000 crore of additional capital, due to the increase in risk weights for certain consumer loans by the RBI on Thursday. The common equity tier-I (CET-1) capital level is also expected to decline by 35–100 bps for various banks.

    Currently, the banking system capital is estimated to be ₹15.2-lakh crore, and the regulatory measures will lead to banks’ CRAR (capital adequacy ratio) requirements increasing by 55–60 bps.

    “Trends in consumer credit show it has been growing at 25 per cent plus since May 2022. The share of loans impacted (about ₹14.8-lakh crore) to total outstanding loans (₹1,51.5-lakh crore) is only around 9.8 per cent in September 2023,” SBI Research said, pegging the quantum of impacted personal loans at 31 per cent of the total portfolio of ₹48.3 lakh crore.

    On Thursday, the RBI hiked the risk weights on unsecured consumer loans, including credit cards, by 25 percentage points for both banks and NBFCs to 125 per cent.

    Risk-weighted assets for the top banks are expected to increase by 2-4 per cent based on loan mix, as a result of which brokerage firms expect common equity tier-I (CET-1) capital levels to decline by 35–100 bps. While this will lead to some moderation in credit growth to these segments, analysts don’t expect any significant slowdown as long as credit costs remain low and risk-adjusted returns remain healthy. Further, part of the impact is expected to be passed on by banks via higher lending rates to ensure return on capital is not adversely impacted.

    The move will lead to prudent unsecured lending and may slow down the growth of unsecured lending over the next 3–6 months as lenders become more selective on unsecured credit, analysts said. They flagged a higher impact on ICICI Bank due to the higher share of loans of NBFCs, State Bank of India, and Axis Bank due to their relatively lower CET-1 capital levels, RBL Bank owing to the large share of credit cards, and IDFC First Bank for the high share of personal loans.

    Among NBFCs, SBI Card and Bajaj Finance are seen as the most impacted, given their meaningful exposure to unsecured and personal credit. The CET-1 impact of risk weight is estimated to be around 416 bps for SBI Card and 240 bps for Bajaj Finance, whereas for other NBFCs it is seen at around 25–85 bps.

    The cost of borrowing for NBFCs will also go up as banks look to increase lending rates, while a higher risk weight leads to higher capital consumption, analysts said, estimating an increase of 10–20 bps in the cost of funds. At present, bank borrowings form 32–65 per cent of the NBFC borrowing mix.

    Banks downplay impact

    Banks, however, downplayed the impact. “Given our strong capital adequacy, either on an immediate basis or in the foreseeable future, we do not expect any impact of the increased risk weights on our growth trajectory and profitability,” said Poonawala Fincorp.

    SBI Chairman Dinesh Khara told reuters that even after accounting for the increased capital requirement, the bank has enough buffers and does not see the need to accelerate fund raising.

    But shares of most banks and financial companies declined on Friday, with the Bank Nifty Index ending down 1.3 per cent as all constituents barring AU Small Finance Bank ended 0.2–3.7 per cent lower.

    Consumers to pay more

    Consumers are bracing for expensive loans as banks increase rates to compensate for the slower loan growth. “By raising the risk weightage for loans to NBFCs, the money supply will get throttled, and result in higher capital requirements for banks. For banks to maintain risk-adjusted returns, lending rates need to go up. At this stage, it is safe to assume that the lending rates can go up anywhere between 40 and 75 bps, but the actual scenario will be market-driven,” said Virat Diwanji, Group President and Head of Consumer Banking at Kotak Mahindra Bank, adding that it will definitely impact the ROE (return on equity) of lenders.

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  • Lenders flag rising delinquencies in small ticket unsecured retail loans post RBI caution

    Lenders flag rising delinquencies in small ticket unsecured retail loans post RBI caution

    A fortnight after RBI cautioned banks against unprecedented growth in unsecured retail loans and asked them to grow “sensibly”, large banks and NBFCs have flagged increased risks and delinquencies in some small-ticket segments.

    As a part of Q2 earnings, ICICI Bank highlighted that market trends and research indicate risk build up and higher defaults in lower ticket loans, especially below ₹50,000 where affordability and repayment ability are constraints.

    Kotak Bank too acknowledged headwinds and higher delinquencies in certain unsecured segments, especially smaller ticket loans, but interim MD Dipak Gupta said the risk-adjusted returns are still “okay”.

    Lenders are continuously monitoring these portfolios and haven’t reached a point of putting the brakes or panicking, he said, adding that while the rate of default is higher than last year, it continues to be below pre-Covid levels.

    Bajaj Finance, the largest retail NBFC, said leverage levels have worsened for the below ₹50,000 ticket portfolio and the company has cut exposure to borrowers with multiple lines of credit of less than ₹50,000 as it reflects imprudence.

    Personal loans up

    Personal loans, including credit cards, grew to 10.7 crore in FY23 from 7 crore in FY22 and 4.5 crore in FY20, led by the less than ₹50,000 and above ₹8 lakh segments, as per an internal analysis by Bajaj Finance. Industry AUM for the segment rose to ₹13.5-lakh crore in FY23 from ₹7.5-lakh crore in FY20.

    Unsecured retail loans accounted for a significant portion of lenders’ fresh slippages in Q2 FY24, however most lenders dismissed any marked concerns given the smaller share of these loans in the total book and the steady rate of collections and recoveries.

    A recent SBI report said unsecured retail loans comprise one-tenth of banks total loans, indicating contained risk at the time. Small-ticket personal loans of below ₹50,000 comprised 2 per cent of banks’ overall personal loans and 0.3 per cent of retail loans as of FY23, according to CIBIL CMI data.

    Corrective action

    Bajaj Finance has reduced exposure to urban unsecured retail loans by 8 per cent and rural loans by 14 per cent. MD Rajeev Jain said the rural B2C segment looked the most vulnerable at the moment and was the only segment where the lender has taken “corrective action” based on the bounce and slippage rates and portfolio efficiency.

    While Kotak Bank will continue its policy of completely providing for unsecured retail loans that are 180 dpd (days past due), RBL Bank said it has accelerated risk mitigation by fully providing for such loans at 120 dpd. This led to the bank providing an ₹48 crore more, in addition to which it also made contingent provisions of ₹252 crore on its microfinance and credit card portfolios.

    Yes Bank said it has strengthened underwriting and is strategically going slower in certain retail segments such as unsecured loans, given the increasing trend of delinquencies, especially in the 30 dpd segment.

    In the October policy, RBI had asked lenders to strengthen their internal risk mechanisms as the “first line of defence” to avoid any future challenges, adding that robust risk management and stronger underwriting standards are the “need of the hour”.

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  • ICICI Bank receives RBI’s approval for making staffing solutions firm i-Process its subsidiary

    ICICI Bank receives RBI’s approval for making staffing solutions firm i-Process its subsidiary

    ICICI Bank said it has received the Reserve Bank of India’s approval for making I-Process Services (India) Pvt Ltd (I-Process) its wholly owned subsidiary, subject to certain conditions, per the Bank’s latest regulatory filing.

    Started in 2005, i-Process was set up to provide staffing solutions services for some of India’s top financial institutions. The company has an employee strength of more than 25,000 and a presence at nearly 500 locations across India, per its website.

    Also Read | ICICI Bank to buyout ICICI Sec in share swap deal

    The total outgo for the acquisition is estimated at Rs. 15.40 crore, subject to finalisation of pricing, in accordance with applicable law/regulations, on receipt of necessary approval(s), the Bank said in its February 2023 regulatory filing. The Bank currently holds 19 per cent stake in iProcess, ICICI Bank then said.

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  • AT-1 Bonds: Market has become polarised towards larger/ quality banks, says Jefferies

    AT-1 Bonds: Market has become polarised towards larger/ quality banks, says Jefferies

    The Additional Tier (AT)-1 bond market has polarised towards large/quality banks post the writedown of these bonds aggregating ₹8,415 crore by Yes Bank in the fourth quarter of FY20, according to Jefferies.

    This observation comes in the backdrop of UBS’ acquisition of the troubled Credit Suisse entailing a write-down of the latter’s AT-1 bonds aggregating $17.2 billion.

    Explained: How will the Credit Suisse crisis impact India?
         Explained: How will the Credit Suisse crisis impact India?
     

    “India had a Credit Suisse-like AT-1 bond issue right around Covid when Yes Bank wrote-down AT-1 bonds and still there was some franchise value assigned to equity through capital infusion by leading banks/ NBFC.

    “Since then, the issuances have been lower and market has become polarised towards larger/ quality banks,” Brokerage firm Jefferies said in a report.

    Top contributors

    Among banks, the top three issuers are the State Bank of India (SBI), HDFC Bank, and Canara Bank with public sector banks (PSBs) having higher contribution from this.

    PSBs have a higher share of AT-1 bonds in capital structure compared to private sector peers, Jefferies said.

    Among PSBs, SBI had AT-1 capital of ₹41,500 crore, followed by Canara Bank (₹12,400 crore), Punjab National Bank (₹8,700 crore), Bank of India (₹2,900 crore), and Indian Bank (₹2,000 crore), the firm said.

    Among private sector banks, HDFC Bank had AT-1 capital of ₹12,300 crore, followed by ICICI Bank (₹5,100 crore), Axis Bank (₹4,800 crore), IndusInd Bank (₹1,500 crore), and Kotak Bank (₹500 crore)

    “Interestingly, smaller banks have a lower contribution from AT-1 bonds. Local bond market investors aren’t really seeing risks here for Indian stocks,” Jefferies said.

    ‘Better-placed’

    The report observed that Indian financials (banks and NBFCs) have also borne the rub-off effect of global dislocations. But, they are better placed with a higher share of retail deposits, limited ALM (asset-liability mismatch) gap & MTM (mark-to-market), limited dependence on AT-1 bonds, and lower exposure to riskier segments like promoter/acquisition finance.

    While equities and global bonds saw pressure off late, the local bond market is stable. Post correction, valuations of some are near/below Covid lows, the firm said.

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  • ICICI Bank posts 34% rise in Q3 PAT

    ICICI Bank posts 34% rise in Q3 PAT

    ICICI Bank posted a net profit growth of 34.2 per cent year-on-year to ₹8,312 crore in Q3FY23, led by 19.7 per cent y-o-y and 3.8 per cent quarter-on-quarter growth in advances to ₹9.7-lakh crore.

    The growth was led by 21.4 per cent increase in domestic loans and 23.4 per cent rise in retail loans. Retail loans comprised 54.3 per cent of total loans as of December 31.

    Net interest income (NII) increased by 34.6 per cent y-o-y to ₹16,465 crore. Net interest margin (NIM) for the quarter was 4.65 per cent — an increase from 3.96 per cent a year ago and 4.31 per cent a quarter ago.

    In the post earnings call, Sandeep Batra, Executive Director, said that NIMs should peak within a quarter or so and threreon will start to stabilise once deposit rates pick up. Despite the slower growth in deposits, the bank is comfortable on borrowing and liquidity with an LCR of 123-124 per cent, he said, adding that the bank is confident that the aspirational loan growth will not be constrained by deposit accretion.

    Provisions

    Provisions for the quarter were 12.5 per cent higher at ₹2,257 crore. During the quarter, the bank changed its NPA provisioning norms to make them more conservative, which resulted in higher provisions of ₹1,196 crore. The bank also made contingency provisions of ₹1,500 crore on a prudent basis. The bank held total contingency provisions of ₹11,500 crore at the end of December.

    Batra said that the provisions had been made on a prudent basis keeping in mind the global and domestic macro environment, inflation, interest rates and geo-political scenario, in order to strengthen the balance sheet.

    Asset quality

    He said that the bank had a conservative-than-RBI policy on provisioning for retail assets which it has now extended to corporate loans, adding that hereon the bank will continue to provide for loans as per the revised model.

    NPA additions, including slippages for the quarter, were at ₹5,723 crore, which were largely offset by recoveries and upgrades of ₹4,604 crore. The bank also wrote-off loans worth ₹1,162 crore during the quarter.

    The gross NPA ratio declined to 3.07 per cent at the end of December from 3.19 per cent a quarter ago and 4.13 per cent a year ago. The net NPA ratio at 0.55 per cent was also better than 0.61 per cent in the previous quarter and 0.85 per cent a year ago.

    BL Mumbai Bureau

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  • Digital Rupee coming on Dec 1: How will it work and what does it mean for you?

    Digital Rupee coming on Dec 1: How will it work and what does it mean for you?

    After months of anticipation, the Reserve Bank of India (RBI) on Tuesday said that it would launch its first pilot for retail digital Rupee, or e₹-R, on December 1. The central bank-backed Central Bank Digital Currency (CBDC), which is similar to cryptocurrency to some extent, will be for retail users.  

    There has been a lot of buzz around the concept of cryptocurrencies, CBDC, and digital currencies. A central bank digital currency can be described as the digital form of a country’s fiat currency, whereas a cryptocurrency is also a digital currency, which is an alternative form of payment with unique encryption algorithms. In layman’s terms, a CBDC is simply digital fiat, whereas cryptocurrencies are digital assets on a decentralised network.   

    What is Digital Rupee or e₹-R? 

    The Reserve Bank of India has defined the e-Rupee as a form of digital token that represents legal tender. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency, and unlike cryptocurrencies, the digital Rupee is issued in the same denominations as paper currency and coins. 

    How will it work? 

    The e₹-R, which will be released on December 1, will be a digital token that represents legal tender. It will be issued in the same denominations as paper currency and coins and will be distributed through intermediaries, here it is banks. 

    2. As per the central bank, users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones and devices. 

    3. The transactions in digital Rupee can take place between Person to Person (P2P) and Person to Merchant (P2M), as per RBI’s statement. 

    4. Payments to merchants can be made using QR codes displayed at merchant locations, just like customers do for Paytm or Google Pay. “The e₹-R would offer features of physical cash like trust, safety, and settlement finality. As in the case of cash, it will not earn any interest and can be converted to other forms of money, like deposits with banks,” the RBI said. 

    5. The pilot will kickstart in four banks – State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank – in four cities, including Mumbai, New Delhi, Bengaluru and Bhubaneswar.  

    6. Four other banks – Bank of Baroda, Union Bank of India, HDFC Bank and Kotak Mahindra Bank – will join this pilot eventually and it would also be extended to other cities such as Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla. 

    “The Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC) aims to fulfill the promise of affordable, safer, and easier payments for all. Since it provides a regulated alternative to cryptocurrencies in the market, the CBDC would lead to more robust and reliable payments, lowering the dependency on cash. The underpinning technology would make transaction costs low. Being interoperable with other payment systems, it will complement existing techniques like UPI, thus completing the mobile payments ecosystem,” said Jaya Vaidhyanathan, CEO, BCT Digital.  

    What’s expected? 

    As per sector experts, India’s CBDC initiative is very much in line with its recent digitalisation efforts worldwide. India is one of the few countries that have launched its own CBDC. Globally, many nations, such as China, Ghana, Jamaica, and some European countries are exploring their CBDC products. Some have even launched their digital currencies. There are nine countries that have fully launched their CBDCs. Eight of the nine countries are located in the Caribbean. The Sand Dollar of the Bahamas was the first CBDC of the world, which was launched in 2019. 

    “The digital rupee (e₹-R) will provide better security, traceability, and accountability for the movement of money through the world’s 5th largest economy. Instead of a distributed ledger, the e ₹-R will get regulated by the RBI, providing legal cover and stability to the digital currency. Since the digital asset is backed by a sovereign institution and can get tracked, it should reduce the excessive fraud inflicted upon UPI users because these funds become untraceable once they are taken out of the banking system,” said Anirudh A. Damani, Founder of Artha Group. 

    The retail digital currency, which will be launched on December 1, will be distributed through a two-tier model. The central bank will first issue to it the chosen banks. The banks will further distribute currency into the hands of consumers. “The introduction of the Digital Rupee in India is anticipated to improve our currency management system’s efficiency, transparency, systemic resilience, and governance. One of the main advantages of the change is that transactions can be completed without even opening a bank account. The government would be able to quickly view all transactions occurring within authorized networks, facilitate real-time account settlements, and maintain ledgers once the digital rupee is released,” said Rajeev Yadav, MD & CEO, Fincare Small Finance Bank. 

    “CBDC-backed currencies are a logical next step in the journey of digital currencies. It eliminates several of the inefficiencies which mar cryptocurrencies by providing stability and comfort with the backing of the central bank (RBI). CBDC will further be a positive step towards the adoption of blockchain for financial services, and will align India with the world that is rapidly progressing towards adoption of digital currencies,” said Deepak Kothari, Co-founder and COO, ftcash. 

    Also read: RBI Guv Shaktikanta Das lauds the launch of digital Rupee, calls it is ‘landmark’

     

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  • PM Modi launches 75 digital banking units. Here’s how they will work

    PM Modi launches 75 digital banking units. Here’s how they will work

    Prime Minister Narendra Modi on Sunday dedicated 75 digital banking units to the nation, taking forward a promise that Finance Minister Nirmala Sitharaman had made during the 2022-23 Union Budget. The project is in line with the Centre’s ambitious goal of financial inclusion. 

    In a virtual address which was attended by Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das, PM Modi said: “As our country witnesses the success of another digital milestone today, I congratulate the collective efforts of our countrymen. These Digital Banking Units will empower digital services and provide a robust digital banking infrastructure for the country.”

    These banking units will improve banking and financial management, promote transparency and also promote financial inclusion, he said.

    Also read: No charges on RuPay credit card use for transactions up to Rs 2,000

    The Prime Minister inaugurated two such units in Jammu and Kashmir Bank – one is the SSI branch at Lal Chowk in Srinagar and the other is the Channi Rama branch in Jammu.

    FM Sitharaman in her Union budget speech for 2022-23 had said the government would set up 75 DBUs in 75 districts of the country to commemorate the 75 years of independence of our country.

    Today, PM Modi said fintech will revolutionise financial inclusion in the country. He said that even the World Bank has lauded India’s efforts in ensuring social security through digitisation. “World Bank says that India has become a leader in ensuring social security through digitisation. Even the most successful people in the field of technology, the experts of the tech world are appreciating this system in India. They too are amazed by its success,” he said.

    What are Digital Banking Units?

    Digital Banking Units are specialised fixed point business units that will provide a variety of digital banking facilities to people such as opening a savings account, account balance check, printing passbook, funds transfer, fixed deposit investments, loan applications, application for credit or debit cards, and bill and tax payments, among others.

    Eleven banks in the public sector, 12 in the private sector, and one Small Finance Bank are participating in the endeavour. 

    Also read: PhonePe moves its businesses, subsidiaries from Singapore to India

    Private sector lender ICICI Bank today announced the launch of four DBUs in Dehradun city of Uttarakhand, Karur in Tamil Nadu, Kohima in Nagaland, and Puducherry. Jana Small Finance Bank launched two DBUs in Bihar and Jharkhand. HDFC Bank launched its units in Haridwar, Chandigarh, Faridabad, and South 24 Parganas of West Bengal.

    In a statement, ICICI bank stated that their DBUs will have two distinct areas: a Self-service Zone and a Digital Assistance Zone. The Self-service zone will house an ATM, a cash deposit machine (CDM), and a Multi-Functional Kiosk (MFK), which would offer services like printing passbooks, depositing cheques, and accessing internet banking.

    There will be a Digi Branch Kiosk, which will offer all services available on mobile banking apps. This will also have a digital interactive screen where customers can interact with a chatbot in order to find product offers and mandatory notices. The self-service zone will be operational 24X7.

    On the other hand, the Digital Assistance Zone will have branch officials to assist customers to undertake various financial and non-financial transactions such as the opening of savings accounts, current accounts, fixed deposits, recurring deposits, availing of home loans, auto loans, personal loan, applying for a credit card, and others. These services will be offered in a completely digital manner through a tablet device, using Aadhaar-based eKYC.

    Also read: What is UPI Lite and how to set it up on BHIM app

    HDFC bank’s DBU will have a self–service zone for customer transactions using interactive ATMs, cash deposit machines, interactive digital walls, net banking kiosks/video calls, and tab banking. Mostly in self-service mode, services will be available round-the-clock all year round. There will also be an assisted zone in a DBU manned by two bank staff.

    Other services available at HDFC digital units are: Account Opening – Fixed Deposit & Recurring Deposit, Digital Kit for customers: Mobile Banking, Internet Banking, Debit Card, Credit card and mass transit system cards, Digital Kit for Merchants: UPI QR code, BHIM Aadhaar, PoS, MSME or schematic loans, End-to-end digital processing of such loans, starting from online application to disbursal, Identified Government sponsored schemes which are covered under the National Portal, Cash withdrawal and Cash Deposit through ATM and Cash Deposit Machines, Passbook printing / Statement generation, Issuance / processing of Cheque Book request, receipt and online processing of various standing instructions, Transfer of funds (NEFT/IMPS), Updation of KYC / other personal details, Atal Pension Yojana (APY), 15 Insurance onboarding for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). 

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