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

Towards its extremity of agrarian expansion, HDFC slope is looking to prosecute 2,500 radical successful the adjacent six months. (Image: Reuters)

Credit and Finance for MSMEs: India’s astir invaluable backstage lender HDFC Bank connected Sunday said it is aiming to treble its agrarian scope successful the coming 2 years portion it looks to “extend its enactment successful MSME banking.” The slope is targeting enlargement of its services to 2 lakh villages successful the coming 18-24 months from the existent 1 lakh villages. It is readying the enlargement done a operation of subdivision network, concern correspondents, concern facilitators, CSC partners, virtual narration management, and integer outreach platforms, it said successful a statement. This volition summation the bank’s agrarian outreach to astir one-third of India’s villages.

Towards its extremity of agrarian expansion, HDFC slope is looking to prosecute 2,500 radical successful the adjacent six months. “India’s agrarian and semi-urban markets are under-served successful recognition extension. They contiguous sustainable semipermanent maturation opportunities for the Indian banking system. HDFC Bank remains committed to widen credit, responsibly, successful work of the nation. Going guardant we imagination of making ourselves accessible successful each pin code,” said Rahul Shukla, Group Head – Commercial and Rural Banking, HDFC Bank.

HDFC Bank, which claimed to beryllium the second-largest lender to the MSME conception successful India, offers its services to MSMEs successful implicit 550 districts successful the country. It already offers customised offerings specified arsenic pre-and post-harvest harvest loans, two-wheeler and car loans, loans against golden jewellery, and different curated indebtedness products successful unbanked and under-banked geographies. The slope saw its MSME indebtedness publication turn by 30 per cent from December 2019 to 2020 and basal astatine pre-Covid levels, according to a connection successful March this year. It is besides among the apical banks successful presumption of hold of recognition nether the ECLGS strategy which stood astatine astir Rs. 23,000 crore arsenic of December 31, 2020.

Subscribe to Financial Express SME newsletter now: Your play dose of news, views, and updates from the satellite of micro, small, and mean enterprises 

Earlier this month, HDFC Bank had signed an MoU with National Small Industries Corporation (NSIC) to connection recognition enactment to MSMEs. The slope volition judge indebtedness applications forwarded by NSIC and see sanctioning loans connected a merit ground and arsenic per the bank’s lending norms. It volition besides look astatine financing projects relating to MSME Sector astatine antithetic places wherever slope branches are located oregon different important concern centers successful the country. Likewise, successful concern with the government’s Common Service Centre Special Purpose Vehicle (CSC SPV) successful July, HDFC Bank had launched an overdraft installation of Rs 50,000- Rs 10 lakh for tiny retailers operating for a minimum of 3 years by providing six months slope connection from immoderate bank.