by NR INDRAN

As part of its ongoing endeavour to take banking to the unbanked, HDFC Bank, the second largest private bank in the country, opened its first branch in Leh today.

The fact that it is the first such move by any major private sector bank in the country in this remote Himalayan district makes it significant not only for the Bank but for the Indian banking industry.

This will open up a world of opportunities for people here who will now have access to modern banking and credit facilities. The branch was inaugurated by Mr. Abdul Rahim Rather, the Minister for Finance, Government of Jammu & Kashmir.

At 10,500 feet above sea level, this is one of the highest branches in the world.

Covering an expanse of 45,110 sq km, Leh is one of the largest districts in India with a population that has traditionally been dependent on agriculture and tourism. Lying in hostile terrain at the heart of the Himalayas, the government’s focus in Leh has been to rejuvenate agriculture and foster entrepreneurship, according to the Ladakh Vision Document for 2025, which envisages the need for credit to foster entrepreneurship among locals. With its footprint in Leh, HDFC Bank will hope to play a key role in financial inclusion by providing credit and other top-notch financial instruments customized for the requirements of the local populace.

Through its dedicated initiatives and programmes, such as Gramin loan melas, the Bank has been reaching out to the doorsteps of 600 million unbanked Indians, a bulk of who reside in rural India or Bharat.

Speaking from Mumbai, Navin Puri, Country Head, Branch Banking, HDFC Bank, said: “As a leading bank of the country, we are committed to take 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.”

Speaking on the occasion, Senior Executive Vice-President, Ravi Narayanan, Branch Banking Head, HDFC Bank, said: “With this branch in Leh, we have taken modern banking to new heights altogether. Using state of the art technology, products to suit local needs and personalized attention, we are confident of serving the people of this beautiful region well. We plan to have more than 50 branches in Jammu & Kashmir by the end of year.”

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India’s leading housing finance company, HDFC Bank is one of India’s premier banks providing a wide range of financial products and services to its 21 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments.

The bank’s competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 16 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.

As of June 30, 2011, the Bank had a distribution network with 2,111 branches and 5,998 ATMs in 1,111 cities.

For the quarter ended June 30, 2011, the Bank’s total income was INR 70.98 billion (`7,098.0 crore) as against INR 54.11 billion (`5,411.0 crore) for the quarter ended June 30, 2010. Net revenues (net interest income plus other income) were INR 39.68 billion (`3,968.0 crore) for the quarter ended June 30, 2011, as against INR 33.92 billion (`3,392.0 crore) for the corresponding quarter of the previous year. Net Profit for the quarter ended June 30, 2011 was INR 10.85 billion (`1,085.0 crore), up by 33.7% over the corresponding quarter ended June 30, 2010.

The Bank’s total balance sheet size increased by 22.6% to INR 2859.42 billion (`285,942 crore) as of June 30, 2011. Total deposits were INR 2111.51 billion (`211,151 crore) as of June 30, 2011.

You can contact the Author at [email protected]