HDFC Bank to double rural coverage through CSCs

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In a move to increase the share of small businesses and increase the rural footprint, Housing Development Finance Corporation Ltd (HDFC) Bank will double the number of villages it serves from 1 lakh to 2 lakh in the next couple of years, covering both the wealthy as well as small and marginal farmers.  It would be achieving this growth without doubling its resources.

The Times of India reported that the Commercial and Rural Banking (CRB) business is driving the growth in rural areas. During the first quarter the bank’s rural business grew by 19% YoY, despite the lockdown. The rural segment is considered as the fastest growing for the bank.

Bank to use channels like CSCs to extend footprint

The bank is extending the footprint of its 5,500 odd branches by using alternate channels like the government’s Common Service Centers (CSCs), which provide digital services to rural areas. The bank extends overdrafts to leads, generated by the CSCs based on their six-month’s bank statement. It has also signed up 1.7 lakh Village Level Entrepreneurs (VLEs) of which 1.1 lakh have been onboarded as business facilitators.

These VLEs have been empowered to issue sanction letters for consumer loans based on customer eligibility. Besides, rural customers can access loans through the self-service digital portal as well.