The Hindu Business Line : IndusInd Bank plans foray into rural areas

IN what could be the first such experiment among the new generation private sector banks, IndusInd Bank has plans to open branches in rural Kerala. To start with, the bank plans to open a branch in Kattappana or Thodupuzha before the end of the year.

"Cash crop-rich areas like Kattappana and agriculturally fertile and rich States like Punjab and Haryana would be the harbingers of our extension into rural India," said Mr Varghese Thampi, Senior Vice-President. "This would not only give us the first mover advantage, but also enable us to capitalise on the kisan card business and priority sector advances."

And the costs of setting up a fully connected new-generation bank in rural India have plunged. "While the costs of leased lines and V Sat connectivity have fallen sharply, new frontiers for connectivity are also emerging with CDMA technology. It is now time to move into the rural areas since the rural people are also increasingly becoming technology savvy, with greater access to Internet in rural homes in States like Kerala and greater familiarity with sophisticated bank products and ATMs."

In order to enhance its customer and business base, the bank is planning to offer all premium services at the lowest cost. As part of the process, savings bank accounts can now be opened in IndusInd Bank, which enables the holder to issue cheques that can be cleared at all the 137 branches with no minimum balance requirements.

Also, the bank would be focusing on the credit requirements of small business and traders. Once the requisite documents are available, credit will be disbursed in 48 hours, Mr Thampi said.

Loans against dematerialised shares would be on offer at a competitive rate of 8.5 per cent.Mr Thampi was here in connection with the opening of the bank's 12th branch in the State at Tiruvalla.

The bank has been given licence to open 52 branches in the country and is expecting clearance to open another 80.

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