RURAL BANKING SMALL BANKS BIG PLANS

Rural India is where bankers see growth opportunities. They are moving ahead with investments in digital technology, wider product range, larger geographical footprint and new applications:

Part 1: Geo expansion connects with target segments

Rural banking heads discussed about the protentional geographies, industries & strategies to drive financial inclusion in rural areas of India.

Rural development plays a major role in the development of the global economy. In India, every nationalized banks has a rural banking division, which creates equitable opportunities for the rural people and enables them economically. It helps socially marginalized to properly integrate into the economy, engage in growth, and protect themselves from economic risks. Private sector banks now are increasingly active in this space, spreading wider and offering newer products.

PROMISING GEOGRAPHIES

Karur Vysya Bank has a strong presence in the southern states, and the bank set up the goal of serving financially unserved and underserved segments thus promoting financial inclusion, especially in rural areas of our country. B. Ramesh Babu, MD & CEO of the bank, says: “Our recent success stories include lending short-term loans for meeting out expenses of agriculture and agriallied activities of farmers, warehouse receipt lending and medium-term loans for promoting agriculture infrastructure lending, etc.”

K. Paul Thomas suggests partnering FPOs and BCs as an effective means to reach rural customers

Fincare Small Finance Bank has established a strong presence in rural areas, including 19 states and 3 UTs, bringing financial services to previously underserved communities. Soham Shukla, COO - Rural Banking, said: “As of 31st March 2023, the bank has a network of 1231 banking outlets spread across 19 states and 3 union territories, covering 338 districts and 57,186 villages.”