I understand that simply dividing overall numbers by branch count is simplistic, but consider the rapid expansion of branches (~1.5x in last 2 years). I believe new branches are mainly to gather liabilities first, then loans etc. Even when you open an account online, you need a nearby physical presence to service it. If IDFCF was already getting sufficient deposits online, they wouldn’t have opened new branches so rapidly - especially given their already high cost/income.
@Alpha2015 I think purely digital loans are quite a small % (<10%) of overall portfolio. Even if IDFCF has been distributing other loans (Personal, Consumer etc) digitally - they need a nearby collection network at least.
Also, if a high enough share of loans are distributed digitally, shouldn’t the commission payout be lesser? Bank’s relatively higher other expense (commissions + DMA) points to a high share of loans distributed via agents, doesn’t it? Or the higher other expenses is just a function of lower ticket size in majority of its loans - consumer, MFI, personal, 2W etc?
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