ICICI Bank of India has announced plans to further its entry into the retail microfinance space with the addition of 200-250 new partnerships with microfinance institutions (MFIs). The bank has already moved aggressively to double the size of its rural and agribusiness loan portfolio over the past nine months; and with the addition of the new targeted partner MFIs, ICICI Bank will have retail operations in 600 MFIs across India.
Under the ICICI Bank partnership model, the microfinance institution assumes the promotional role of identifying, training and promoting microfinance clients, while the bank provides the financial backing. ICICI Bank also provides securitization services for its partner organizations, which will become increasingly important as the secondary market for microfinance develops.
Additional Resources
1) ICICI Bank
2) MicroCapital Blog: “ICICI Bank Brings Microcredit One Step Closer to Investment From the Developed World,” February 6, 2006.
3) MicroCapital Blog: “Microfinance Invests in India’s Top Minds,” January 24, 2006.
4) MicroCapital Blog: “Why the Big Banks are Investing in Microfinance,” April 5, 2006.
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