Indian Bank, which was established in 1907 and is owned by the government of India, recently announced plans to expand its microfinance network by opening 28 new microfinance branches, bringing the total to 60 by March 2012. According to T M Bhasin, Chief Marketing Director of Indian Bank, the bank’s microfinance initiative, which was launched in 2007, has been successful, posting a loan recovery rate of 99.5 percent. Indian Bank’s microfinance branches cater specifically to rural self-help groups (SHG), groups of individuals who are jointly responsible for individual loans. Loan sizes range from INR 60,000 (USD 1,300) to INR 1,200,000 (USD 27,000) per group.
As of March 2010, Indian Bank reported total assets of INR 1 trillion (USD 20 billion) and operating profit of INR 27.5 billion (USD 607 million).
By Julie Moksim, Research Associate
About Indian Bank: Indian Bank is a financial institution that was established in 1907 and nationalized by the government of India in 1969. As part its “Urban Financial Inclusion Initiative,” the bank began opening exclusive microfinance branches in unbanked urban areas in 2007. As of March 2010, the bank reported total assets of INR 1 trillion (USD 20 billion) and operating profit of INR 27.5 billion (USD 607 million).
Sources and Additional Resources:
Business Standard: “Indian Bank to Expand Microfinance Branches” by Virendra Singh Rawat, February 19, 2011, http://www.business-standard.com/india/news/indian-bank-to-expand-microfinance-branches/425720/
MicroCapital.org Brief, January 28, 2011: Indian Bank Receives Skoch Financial Inclusion Award 2011 for “Self-Help Group (SHG) Initiatives – Urban Financial Inclusion”, https://www.microcapital.org/microcapital-brief-indian-bank-receives-skoch-financial-inclusion-award-2011-for-?self-help-group-shg-initiatives-urban-financial-inclusion?/
MicroCapital’s Microfinance Universe Profile: Indian Bank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Indian+Bank
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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