HDFC Bank branches will open in small cities, this is how other banks will gain strength.

HDFC Bank, the country's largest private bank, is now going to extend its services to small towns. This may cause a big blow to other private banks.

The merger of HDFC Bank and its parent company HDFC Limited has been completed. After this, HDFC Bank is getting help in extending its services to small towns, because due to this its branch network has increased very rapidly. But do you know that his move has become a new headache for ICICI Bank and Axis Bank.

HDFC Bank is the largest bank in the country in terms of market capitalization. After HDFC Bank does this, India's influence in global finance is also expected to increase.

HDFC's reach increased across the country

After the merger of HDFC Bank, its reach has increased across the country. According to a new report by Jefferies, the number of its branches has increased by 40 percent. Whereas its two main rivals, private banks ICICI Bank and Axis Bank, are largely limited to cities.

With such a huge presence, HDFC Bank is now challenging government banks like SBI, PNB etc. in the deposit and loan sector. Due to this, banking competition is expected to increase even in small cities.

No contenders in new branch area

Another big thing about the merger of HDFC Bank is that about 50 percent of its new branches are in such cities where no other private bank is present. In such a situation, the bank will get its direct benefit in the form of profit. HDFC Bank is expected to grow at 16 percent year on year for the next 3 years.

Investors gain profits due to business growth

Even though the shares of HDFC Bank may be in a downward trend right now, the business will increase with the expansion of its network. Ultimately this will be beneficial only for the shareholders of HDFC Bank.