ICICI Bank sees Enormous Opportunities in Rural India
ICICI Bank aims to exploit the untapped rural banking sector in India, as huge credit demands exist in this sector. Credit demand in rural India is expected around Rs.1,330 Billion, whereas its supply was just about Rs.40 Billion in previous year (2005), as per Nachiket Mor- deputy MD of the bank.
The Bank plans to adopt the franchisee model for widening its reach in the rural areas of India. Around 8,000 touch points have been established by ICICI Bank across the country, so that it's able to penetrate rural pockets & develop low priced ATMs. Also, the bank toward rural sector financing disbursed a sum of Rs.2, 500 crore. The Bank expects that good rural credit will off take in 2006.
To provide easy loans, the bank has tied up with many FMCG companies such as Godrej Sara Lee. The distributors of Sara Lee are provided with loans for buying Godrej products, under the channel-financing model. The distributors, in turn, may help the dealers in getting advances from the bank.
ICICI Bank is also providing funds to cattle farmers so they can buy fodder, under the similar arrangement with the companies that manufacture fodder. Working in partnership with postal department, the bank intends to expand its rural base in the country. RMAG (Rural, Micro banking & Agri business Group) has been formed by the bank for a more focused approach.
RNCOS has recently published a report namely "Indian Banking Sector Analysis (2006-2007)", which provides extensive research and objective analysis on all aspects of the growing banking industry in India. As per RNCOS report, "World Bank study has revealed that the current demand for credit in Rural India is estimated to be around Rs.1,330 Billion. In addition, 32000 commercial bank branches cover only 7% of rural sectorand large market is still untapped in terms of liability (about Rs.215 Billion) as well as asset (about Rs.1, 204 Billion) sides of banking business."
Key issues and facts analyzed in this report include
· How does the competitive market landscape look like for the Indian Banking Industry? · Driving factors behind the Banking Sector in India. · Various opportunities and challenges in this industry. · Key players in Indian banking sector. · Predictions about the Banking Sector in India.
For further information on Indian Banking Sector, read the report "Indian Banking Sector Analysis (2006-2007)" published by RNCOS at: http://www.rncos.com/Report/FM005.htm
RNCOS is an industry leader in the field of online business research. We specialize in industry research on various business verticals. To read our other reports, visit us at: http://www.rncos.com/Report.htm or email us at info@rncos.com
For current Industry News: http://www.rncos.com/blog
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