Private sector lender, HDFC Bank is planning to increase the penetration of mobile banking services in Andhra Pradesh. The bank targets to achieve this aim once 3G services are launched on full fledged basis in the state, reported a senior official of the bank.

"It (mobile banking) is still in the nascent stage. It has to go a long way. After facilities like 3G services are launched, it is expected to reach 10 per cent. Currently, mobile banking is around 3 to 5 per cent," HDFC Bank Senior Vice-President, Mr C S Gopinath said.

The bank also plans to set up 34 new branches in the state by the end of this fiscal.

The major aim behind the increase in penetration of mobile banking is to encourage users to become more tech savvy and opt for services like ATM, mobile and Internet banking.

"We have 450 to 500 ATMs in AP and up to 20 per cent of customers use Internet banking," he said.

"Currently, we have 103 branches in AP. We plan to open another 34 by the end of this financial year, taking the number of branches to 137. In Karnataka, we have close to 100 branches and in Kerala - 150. In Tamil Nadu, we have 135 branches," Gopinath said.