Private sector lender HDFC Bank is looking at increasing its reach in the microfinance segment through tying-up with the postal service department and is in talks with it for the same.
"Our bank is now evaluating opportunities to tie-up with the postal department to increase our microfinance base in the rural areas of Maharashtra," a senior HDFC Bank official told PTI here on Monday.
The official also said that even if the postal department keeps for itself a three per cent spread, credit could be extended at not more than 15 per cent interest rate and the post-offices could lend to the borrower directly.
"The network of more than 1.5 lakh offices across the country (more than twice the number of all the branches of the entire banking system) has turned out to be perhaps the most valuable resource of the Department of Posts to utilise this service," the official said.
India Post has already tied-up with NABARD for extending microcredit in Tamil Nadu.
