HDFC Bank to augment hub and spoke model in Gujarat

HDFC Bank's is extending the modern day banking to rural parts of the country by augmenting its presence in Gujarat by increasing its 'hub and spoke' banking model.

Presently, the bank runs six hubs as pilot project in Gujarat. "The bank will have 22-25 hubs in Gujarat with an average of 3-4 spokes for each hub (branch)," informs a senior bank official. Approximately, bank will have 70-80 spokes in Gujarat. The 22-25 hubs includes the six hubs that are operational as pilot.

The bank expects to make operational the remaining hubs in the next two to three weeks. Identification of the location has been done by the bank and the expansions are on. The bank will have its own hubs and each hub will be cover approximately a distance of 30 km.

Commenting on the bank's initiative in rural economy, Ravi Narayanan, Senior Vice President, regional head, HDFC Bank, Gujarat, said, "We cover practically every element of the rural economy from the agriculturists to small to tiny businesses to traders to transport operators. We have appropriate products for each one of them".

The bank will be offering specific rural products including all the kind of urban-centric banking products such as saving account, fixed deposits, automobile loans, foreign exchange facilities and loans.

Narayanan, said, " Hub (branch) and spoke model enables us to reach out to every rural folk within a 30 km radius".

"In Gujarat, the total advances to agriculture and allied sectors was well in excess of Rs 1500 crore for the last fiscal", adds Narayanan.

He further said that the HDFC bank presence in the year 2003 was not significant, but in recent years the bank is well engaged in the rural market in Gujarat and looks forward to significantly contributing to it.