HDFC Bank says 97% of its payments and service transactions now happen digitally, yet the bank also operates 9,700 branches.
If most payments and service requests are already digital, why keep building a large physical network?
The answer matters because it shows how one of India's biggest lenders sees the future of banking: not as a contest between branches and technology, but as a model where both serve different roles. That strategy could shape how banks compete for deposits, loans and customer loyalty in the years ahead.
Two Tracks
Digital banking now handles much of the routine work. "The efforts have increased digital adoption to 97% for payments and service transactions and 92% for acquisition journeys," Chief Executive Officer Sashidhar Jagdishan said during the FY26 earnings call.
That means payments, service requests and even many customer sign-ups are moving through digital channels. The bank also said its mobile app serves more than 60 million registered customers.
Yet the bank continues to highlight branches as part of its growth strategy. "The distribution nearly doubled to 9,700 branches," Jagdishan said while outlining investments made over the last five to six years.
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Why Branches
Branches still do work that apps alone may not fully replace. Management also highlighted deposits, salary accounts, mortgages and MSME banking as growth areas. These services help to serve customers who prefer face-to-face support.
The lender's own numbers point to that wider strategy. Its customer base nearly doubled to 100 million, and it continues to add six million to eight million customers a year, Jagdishan said.
That creates a larger pool of users who may begin with a savings account, use digital payments daily, and later take loans, cards or investment products.
What Next
Management said investments in branches, technology and the merger with former parent HDFC Ltd are expected to create "huge operating leverage" in future years, Jagdishan said.
The message is clear: HDFC Bank is building for a future where customers tap screens every day, but still walk into branches when it matters most.
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