HDFC Bank carves out rural banking business to expand into India's rural market

HDFC bank today announced it has carved out a rural banking function to penetrate deeper into India's rural market. The new wing, Rural Banking will consolidate the bank's existing initiatives in this direction, and take it closer to the masses.

As part of the 'Future-Ready' project,  Rural Banking business is carved out of the company's Retail Branch Banking business to focus on semi urban and rural areas, a large part of which remains unexplored, the company said.

Anil Bhavnani has been appointed as the National Rural Banking Head. The bank has at present 50 per cent of its 6,342 branches in semi-urban and rural areas, and remaining 50 per cent in metro and urban areas. The bank also works with Village Level Entrepreneurs (VLE) of Common Service Centres (CSC) as an extension of the bank's branches in far flung areas.  

According to HDFC Bank, it will open over 1,064 branches in semi-urban and rural areas in the current financial year.

The bank has partnered with Institute of Rural Management, Anand to create ‘Rural First’ strategy by understanding evolving dynamics related to consumer behaviour, customer satisfaction, service design, and service delivery. The bank said that it aims on providing one stop shop solution to small farmers, workers, and traders, and spreading awareness on good savings habits and financial literacy.

Anil Bhavnani, Senior Executive Vice President and National Rural Banking Head, HDFC Bank, said, "This is both a challenge and an opportunity and I am very excited to take this up. For many years now, the bank had 50 per cent of its branches in semi urban and rural areas. With this enhanced focus, we will open more branches this financial year in semi-urban and rural areas.”

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