Public sector lender, Indian Bank is planning to come up with 10 e branches in the country by March 2012. The huge margin in savings as observed by the implementation of such branches has led the bank to come up to this decision.

"Our focus is on reducing the transaction cost and opening more e-branches in future so that people can get 24-hour service," Mr T.M. Bhasin, Chairman and Managing Director, Indian Bank said.

"Our first two e-branches are ready now and they will be inaugurated along with our new head office premises in Chennai early next-fiscal," he said. The bank has also identified Mumbai, New Delhi and Bangalore for these branches, which would be opened by September this year. "We hope to take the number up to 10 by March 2012," he added.

Bhasin said that while a conventional bank branch uses floor area upto 1,500-sq-ft, the e branch would be taking upto 400 sq-ft only. The branches would have ATM facility along with deposit as well as withdrawal facility.

There will be a check drop machine which along with the automated receipt will generate a photo copy of the check.

The total cost of setting up these branches will be about Rs 11 lakh, which is "very nominal because it is capitalised, and gets recovered in two years' time," explained Mr Bhasin. "The e-branches will be manned by one staff member initially to guide customers," he said.