RETAIL STORE INDIA

The Retail Space Provider Company

 27 Jan, 2008, 1616 hrs IST, PTI

NEW DELHI: Private sector lender HDFC Bank will set up over 250 new branches in next 2-3 months and is also looking to foray into the lucrative investment banking in India and abroad.

The country's second largest bank is looking at more than 1,000 branches by March-April, which could make it bigger than ICICI Bank, the largest private sector lender, in terms of branch network.

The massive expansion drive also includes a presence in global markets like the UK, Hong Kong and the Mid-East, besides beginning of investment banking business by the April- June quarter that would boost its fee-based income, according to people close to the development.

The bank's investment in banking business, expected to be operational in the first quarter of next fiscal, would fall under corporate wholesale banking division headed by its Executive Director Harish Engineer, according to sources.

The highly competitive investment banking space is already flush with a number of full-service banks like SBI, ICICI Bank, Kotak Mahindra Bank and Axis Bank, in addition to various pure-play domestic and overseas investment banks.

When contacted, HDFC Bank spokesperson said the bank had got SEBI's approval for investment banking operation a couple of weeks ago but refused to divulge further details.

The push into investment banking market comes amid the Mumbai-based bank planning a major expansion of its retail banking network. HDFC Bank currently has 746 branches, over 200 less than those of ICICI Bank.

In a communication to its customers, the bank said, "It is gearing up to expand its current network of branches to cross the 1,000 branches mark in the near future."