IndusInd Bank plans new rural initiatives

IndusInd Bank is planning to expand its product portfolio in the retail finance and vehicle finance segments in rural areas. For this, the bank has acquired Ashok Leyland Finance (ALF) and is converting its branches into bank branches.

"Many ALF branches are situated in semi-urban and rural areas. We aim to compete with public sector banks in the rural areas by expanding our product portfolio," said Bhaskar Ghose, managing director, IndusInd Bank.

The bank has also announced Indus Easy Savings Account in a bid to target rural consumers. The account is a no-frills account which can be opened with an amount as low as Re 1 and without tedious formalities.

It also provides free internet registration and allows weekly withdrawal facility with an ATM option. The bank aims to take the product to the masses through its 131 branches and nine extension counters.

"Initially we are targetting six lakh customers under the no-frills account scheme. We are awaiting clearance from the Reserve Bank of India (RBI) for converting ALF branches into IndusInd Bank branches. Though we have started the conversion procedure, there are about 70 branches for which we are seeking licence. These branches are mainly located in small towns and can be used for the no-frill account scheme," said Ghose.

The bank plans to cater to the poorer sections of the society by lowering entry barriers and simplifying procedures. The account has no pre-conditions or hidden charges.

"As an additional benefit, IndusInd Bank proposes to extend free training on IndusNet - its internet banking facility - to customers under its no-frills account scheme.," Ghose said.

The bank also plans to launch various products for its high-end customers. "We are soon coming up with wealth management products for our non resident Indian customers," Ghose added.