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“Selling to the poor may be more

profitable than selling to you and me.

This is where the future is.

Opportunities are every where. The

divide is not about lack of opportunity,

it is about lack of imagination.”

C.K. Prahalad

"Financial inclusion is the process of ensuring access

to financial services and timely and adequate credit

needed by vulnerable groups such as weaker sections

and low income groups at an affordable cost.“

Dr. Rangarajan Committee on Financial Inclusion

What is financial inclusion

                            

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FINANCIAL INCLUSION- OUR FINANCIAL INCLUSION- OUR ENDEAVOURENDEAVOUR

                            

Our Efforts – So Far Our Efforts – So Far

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Achievements at a GlanceAchievements at a Glance

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3.3 mn + Customer base

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AP

UP

Achievements at a GlanceAchievements at a Glance

                            

Our Experiential LearningsOur Experiential Learnings

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Particulars 2009-10 2010-11 2011-12 2012-13

Total Villages to be covered at the end of the year

10804 18000 25000 32000

Out of Which 2000+ Population Villages

1004 3504 4163 4163*

Out of Which Less than 2000 Population

9800 14496 20837 27837

Deployment of BLBUs (CSPs) 2500 9000 15000 20000

Total Customers 3.8 6.8 9.0 10.0

Mission to AchieveMission to Achieve

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*No of villages with 2000+ population is 3159 allotted by SLBCs for coverage by March, 2012

                            

The TargetThe Target

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Target SegmentTarget Segment

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How the bank is moving aheadHow the bank is moving ahead

The StrategyThe Strategy

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The StrategyThe Strategy

The Action PlanThe Action Plan

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The Action PlanThe Action Plan

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Technology AdoptedTechnology Adopted

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Year / Parameter

2009-10 2010- 11 2011- 12 2012-13

No. of accounts (in lakhs)

20 41 57 64

Total deposits 1000 2475 4800 8000

Total Advances 400 1650 3840 6400

Total Business 1400 4125 8640 14400

(Rs. In Lacs)

Projected Business under FIProjected Business under FI

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Micro-Credit Products on Offer…Micro-Credit Products on Offer…

Micro-Products on Offer…Micro-Products on Offer…

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Reaching Out To Small & Marginal farmers- PACS MODEL:

Bridge the funding gap faced by members due to paucity of funds in PACS and relieve farmers from the clutches of informal sources/ money lenders (70% PACS members are small & marginal farmers)

Co-options, a Technologies Solution Ltd. Co., has bagged computerization of PACS in AP pursuant to Vaidyanathan Committee recommendations

Co-Options Technologies Limited offers end-to-end services in enabling Bank to provide top up crop loans to farmer members of PACS through BC-M/s Co-Options Rural Foundation (CRF)

Co-Options solution envisages sourcing farmer, undertaking due diligence, disbursement and recovery of dues. The sanction of loan is vested with Branch Manager

Our Pioneering EffortsOur Pioneering Efforts

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• 2748 PACS in AP are with better track record. Of these 625 are computerized • Credit requirement of each PACS is Rs 83.75 lacs • Hence, scope of lending to farmers through this model Rs.500 Crores in the state of

Andhra Pradesh

• Loan ticket size is Rs 1.00 lac

• Pilot launched in February 2009 at Nizamabad, Chittoor and East Godavari districts of AP - successful with 99% recovery

• 7000 loans sanctioned -- amount disbursed Rs 23.00 Crore

Reaching Out To Small & Marginal farmers- PACS MODEL: Contd…

The slides created here are for internal use. Copy or unauthorized replication should be avoided22

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