IndusInd Bank is making efforts to strengthen its presence in the rural parts and expecting to post 10 per cent of its operating profit by March 2018 mainly from the rural areas of the country.
IndusInd Bank’s chief executive officer Romesh Sobti said the bank is cashing in on the success of government porgrammes and fast-growing businesses like micro finance and vehicle loans as it aims to expand its reach.
“Sustainable rural growth does not only pertain to agriculture. It’s beyond that. The rural sector would be tapped via physical and digital network,” he said.
IndusInd Banks is endevouring to meet the target of 1,200 branch network by March 2017. The bank has around 1,000 active branches as of March this year. Sobti laid emphasis on increasing branches despite digitisation.
“There is a huge opportunity in the rural parts of the country. I believe having a branch network of 2,000 is not sufficient. We need to tap the unbanked areas and aim to continue branch expansion even after March next year,” he remarked.
Sobti expects at least 20% of IndusInd’s asset book to come from rural areas in the next three years, driven by loans to buy two-wheelers, small commercial vehicles, tractors and cars besides micro lending.
