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.
Except for the historical information contained herein, statements in this release, which contain words or phrases such as 'will', 'would', etc., and similar expressions or variations of such expressions may constitute 'forward looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to obtain statutory and regulatory approvals and to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the adequacy of our allowance for credit losses, technological implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by us with the United States Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. All reference to interest rates, penalties and other terms and conditions for any products and services described herein are correct as of the date of the release of this document and are subject to change without notice. The information in this document reflects prevailing conditions and our views as of this date, all of which is expressed without any responsibility on our part and is subject to change. In preparing this document, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. ICICI Bank and the "I man" logo are the trademarks and property of ICICI Bank. Any reference to the time of delivery or other service levels is only indicative and should not be construed to refer to any commitment by us. The information contained in this document is directed to and for the use of the addressee only and is for the purpose of general circulation only.