HDFC Bank aims to operate more rural MSMEs; plans to expand reach to 2 lakh villages in 2 years

To meet its goal of rural expansion, HDFC Bank is looking to hire 2,500 people over the next six months. (Image: Reuters)

Credit and financing for MSMEs: India’s most valuable private lender, HDFC Bank, said on Sunday it aims to double its rural reach over the next two years while seeking to “expand its leadership in the banking sector of MSMEs”. The bank aims to expand its services to 2 lakh villages over the next 18-24 months from the current 1 lakh villages. It anticipates expansion through a combination of network of agencies, business correspondents, business facilitators, CSC partners, virtual relationship management and digital outreach platforms, he said in a statement. This will increase the rural reach of the bank in about a third of Indian villages.

To meet its goal of rural expansion, HDFC Bank is looking to hire 2,500 people over the next six months. “India’s rural and semi-urban markets are underserved when it comes to extending credit. They present long-term sustainable growth opportunities for the Indian banking system. HDFC Bank remains committed to granting credit, in a responsible manner, in the service of the nation. In the future, we dream of making ourselves accessible in every PIN code, ”said Rahul Shukla, Group Head – Commercial and Rural Bank, HDFC Bank.

HDFC Bank, which claimed to be the second-largest lender in the MSME segment in India, offers its services to MSMEs in more than 550 districts across the country. It already offers personalized offers such as pre- and post-harvest harvest loans, loans for two-wheelers and automobiles, loans for gold jewelry and other loan products organized in unbanked and sub-geographic areas. banked. The bank saw its MSME loan portfolio increase by 30% from December 2019 to 2020 and reach pre-Covid levels, according to a statement released in March of this year. It is also among the top banks in terms of extending credit under the ECLGS program, which amounted to around Rs. 23,000 crore as of December 31, 2020.

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Earlier this month, HDFC Bank signed a memorandum of understanding with the National Small Industries Corporation (NSIC) to offer credit support to MSMEs. The bank will accept loan applications forwarded by the NSIC and consider sanctioning loans on the basis of merit and in accordance with the bank’s lending standards. It will also examine the financing of projects related to the MSME sector in different locations where there are bank branches or other important industrial centers in the country. Likewise, in partnership with the government’s Common Service Center Special Purpose Vehicle (CSC SPV) in July, HDFC Bank launched an overdraft facility of Rs 50,000 to Rs 10 lakh for small retailers operating for at least three years by providing a six-month bank statement. from any bank.

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