'New branch opening pace has come down owing to digital transactions'

Hyderabad: The pace of opening new bank branches has come down since the last two-three years thanks to the rise in digital transactions, a top official of Kotak Mahindra Bank said on Friday. Over 85 per cent of the bank's transactions take place in digital mode, its Joint Managing Director Dipak Gupta said.

"...But, nationally,we will continue opening branches. But it is not at the same pace as it was let's say two years, three years back. Because, a lot of customer acquisition today happens digitally," he told PTI here. "So you don't really need so much more physical presence really. The mobile does all the good work today," Gupta said.

The presence of branches is still important, but it is not as important as it was two-three years back, he said. Branch presence, Gupta said, is required for trade customers who still deal a lot in cash and for retail ones who want to see a physical place to "get comfort, trust".

"For trade customers, what we call commercial customers, you still need physical branches. So you have to open physical branches for trade customers. But retail customers, less and less physical branches," he said. Kotak Mahindra Bank has close to 1,400 branches all over the country and it would add about 150 branches every year, Gupta added.