HDFC Bank to double its rural reach to 2 lakh villages in 2 years

Private sector banking major HDFC Bank is aiming to expand its reach to two lakh villages in the next 18-24 months.

The bank has planned this expansion through a combination of branch network, business correspondents, business facilitators, CSC partners, virtual relationship management and digital outreach platforms. This will increase the bank’s rural outreach to about a third of the country’s villages.

HDFC Bank currently offers its products and services to MSMEs in over 550 districts. It's rural banking services extend to 1,00,000 Indian villages. It aims to double this to 2,00,000 villages. As a part of this mission, it plans to hire 2,500 people more in the next six months.

Commenting on the bank's rural expansion strategy, Rahul Shukla, Group Head – 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. HDFC Bank remains committed to extend credit, responsibly, in service of the nation. Going forward we dream of making ourselves accessible in every pin code.”

"While offering its services, the bank will offer its traditional products and services as well as new ones. It already offers customised offerings such as pre-harvest and post-harvest crop loans, two-wheeler and auto loans, loans against gold jewellery, and other curated loan products in unbanked and under-banked geographies. It will now make its offerings keeping in mind the fast-changing rural ecosystem,” according to a press statement.