HDFC Bank is strengthening its rural foray. According to the bank it is targeting to expand its reach to two lakh villages in the next 24 months, the bank confirmed this in a statement.
The bank says it will accomplish this target through a combination of branch network, business correspondents, business facilitators, CSC partners, virtual relationship management and digital outreach platforms.
This rural expansion strategy will increase the bank’s rural outreach to about a third of the country’s villages.
Commenting on this development, Rahul Shukla, Group Head of Commercial and Rural Banking, HDFC Bank, said, “India’s rural and semi-urban markets are under-served in credit extension. They present sustainable long-term growth opportunities for the Indian banking system.”
He also added that keeping its commitment towards extending credit responsible across the nation, the bank is focused on making itself accessible in every pin code in the coming times.
At present, HDFC Bank offers its products and services to micro, small and medium enterprises in over 550 districts with its rural banking services extending to 100,000 villages in India. It aims to raise this number to 200,000.
“Government of India through a variety of schemes is transforming rural economics. We believe in following the direction, as a responsible leader in banking and financial services space, by making best-in-class banking products and services accessible to all sections of the society. Our digital initiatives will play a big role in deepening our penetration in the remotest corners of India and help us extend credit to those who have remained financially excluded despite the progress of our nation,” Rahul was quoted as saying.
The bank plans to hire 2,500 people in the next six months as part of this expansion strategy.