ICICI Bank commences lending to Self Help Groups in Odisha

December 01, 2016




  • ICICI Bank offers doorstep banking to reach the financially under-banked women
  • Leverages technology like TAB Banking for sourcing, mobile app for servicing loans

 

Bhubaneswar: ICICI Bank Ltd, India’s largest private sector bank by consolidated assets, announced today that it will support women beneficiaries through its programme for Self Help Group (SHG) in Odisha. This initiative, which is a part of the bank’s financial inclusion programme, aims at empowering less-privileged women to become self-reliant. This includes opening basic savings accounts for SHGs and offering micro loans to help them earn a livelihood. The bank will also provide collateral-free loans at a competitive rate to encourage women residing in the rural & semi-urban locations of the state to engage in income generating activities. This will help them improve the financial and social status of their family.

 

SHG is a term used for a group of 10-20 less privileged women, primarily from rural and semi urban areas, who pool their resources and use this money for income generating activities like cattle and goat rearing, kirana/grocery vending, jewellery making and handicrafts among others.

 

Shri Pradip Kumar Amat, Honorable Minister for Finance, Public Enterprise, Health & Family Welfare, Odisha inaugurated the event that marked the bank’s foray into supporting women through SHGs in the state. Shri Arun Kumar Sahoo, Minster of Panchayati Raj and Law Department, Odisha, graced the occasion.

 

Speaking at the occasion, Mr. Anirudh Kamani, Senior General Manager & Head, Rural & Inclusive Banking, ICICI Bank said, ”We believe that women are the backbone of every household. They have demonstrated their ability to borrow and repay loans from financial institutions. I am convinced about the entrepreneurial skills of women residing in rural & semiurban locations in Odisha, and I am sure that by accessing financial products from the bank, they shall uplift the financial as well as social status of their family. We would focus on SHGs whose members are engaged in livelihood generating activities - be it farm or off farm – and thereby provide financial assistance in scaling up their economic enterprises. Under this model, ICICI Bank officials reach out to customers at their doorstep, instead of the customer approaching the bank’s branches. This reduces the transaction cost for the customer, as she does not have to let go off her day’s income, or spend money in travelling to the nearest branch of the bank.”

 

Avijit Saha, General Manager & Retail Business Head-East, ICICI Bank said: “The Bank would look forward to take part in various projects with the state government to provide technological solutions in Odisha. In the SHG leading too, we will use tab banking to ensure convenience to the SHG members by offering quicker disbursement.”

 

ICICI Bank’s SHG programme is currently running across seven states. ICICI Bank is one of the most significant lenders to SHGs.

 

Key features of ‘ICICI Bank Self-help group’:

  • Doorstep banking
  • Dedicated manpower
  • Sourcing by tablets

 

ICICI Bank is a pioneer in introducing doorstep banking to SHGs. It has a dedicated team to reach out to them at their villages. The Bank officials explain the product offering, facilitate the customers in completing the formalities of loan application as well as the savings account. They capture the basic demographic details of the customers using tablets, click images of KYC documents as well of the photograph of the customers, and send the data digitally to the central repository. They also collect the requisite documents from their doorstep. This reduces the transaction cost for the customers’ as they do not need to travel to the Bank’s branch to apply for loan. This process makes the turn-around time for account opening and sanctioning of the loans faster. Close to 90% of SHG customers across the country are sourced using tablets.

 

ICICI Bank services its large customer base through a multi-channel delivery network of branches, ATMs , call center, internet banking (www.icicibank.com ), mobile banking, banking on Facebook & Twitter and ‘PocketsbyICICIBank’ the country’s first digital bank on mobile. For updates, visit www.icicibank.com , follow us on www.twitter.com/ICICIBank

 

About ICICI Bank: ICICI Bank Ltd (NYSE:IBN) is India’s largest private sector bank by consolidated assets. The Bank’s consolidated total assets stood at US$ 144.7 billion at September 30, 2016. ICICI Bank's subsidiaries include India's leading private sector insurance, asset management and securities brokerage companies, and among the country’s largest private equity firms. It is present across 17 countries, including India.

 

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