ICICI Bank to speed up rural networking

ICICI Bank is significantly moving ahead with its rural networking plan. Nachiket Mor, executive director, said, "There is immense potential in the rural market. The requirement may be setting up around 100 'touch points' in every district. So far, we have been able to establish 8,000 touch points."

He was speaking on the sidelines of the Banking Conclave organised by FICCI-eastern regional council. The current year would also witness significant growth in the number of touch points, he hinted.

"Our model for rural business will be establishing touch points, so that every rural citizen can access banking facility within decent distance. The aim is to have one franchise in every block in the country. We may not end up with all the blocks but it will demand driven," he explained.

ICICI Bank's rural asset base is worth Rs 18,000 crore and is expected to grow further, he added.

ICICI Bank's rural delivery channels would include branches at major agricultural markets, credit franchise, rural internet kiosks, micro-finance institution partnerships targeting specific segments of the rural population.

"The bank will be looking for franchise partner who will be willing to deliver full range of products to its customers," Mor added.

The bank had disbursed around Rs 2,500 crore to more than three million customers through micro finance institutions (MFI) in 2005-06 and significant growth in this path was expected, he noted.

About the bank's strategy of reaching out to rural population through touch points, Mor said informal credit in India was $82 billion, with around 780 million rural population with limited access to financial services.

Around 400 million people do not have any access to financial service. The yearly credit demand from poor and marginal poor population was around Rs 1,50,000 crore out of which Rs 4,000 crore was actually met, he added.