IDBI to woo rural Gujarati entrepreneurs with ‘kiosk banking’, opens 2 new branches

The new IDBI chief said that IDBI will push for 'low-cost model' and will look to improve its rural presence through 'kiosk banking' in the state of Gujarat.

The IDBI branch expanded its footprint in Gujarat by opening two new branches in Prantij in Sabarkantha and one in Ramosana in Mehsana district, bringing the number of its branches here to 101.This is in line with the IDBI’s expansion plans of bringing its total number of branches to 250 nationally by next March, said Kishor Kharat, MD & CEO of IDBI Bank who was in Ahmedabad for the inauguration of these branches.

Making a strong pitch for financial inclusion, the new IDBI chief who took over in August this year said that IDBI will push for ‘low-cost model’ and will look to improve its rural presence through ‘kiosk banking’ in the state of Gujarat. “We opened our 101st full-fledged branch in Gujarat today. In Gujarat we will adding around 10-15 more branches especially in the rural areas. We will be opening ‘kiosk banking’ in a bid to take our low-cost model to urban, semi-urban and rural areas which have business potential to finance entrepreneurs.”

Speaking of the SME sector in Gujarat which has been facing stress owing to a slackness in the economy, Kharat said, “SME’s are most dependent on big corporate accounts. Once the corporates start improving then the position of SME sector will improve along with the revival of the economic cycle.”

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Kharat said the bank aims to play a major role in development activities with all government projects and also forge abroad with its Development Finance Institution (DFI) model. The bank has plans to open a minimum of ten branches in African and Asian countries. Currently it has only one overseas branch at Dubai.

Speaking about IDBI’s revised business model which it will be launching shortly Kharat added, “We are strengthening our government business vertical. We are also open to business outside country especially as development finance banks are not there and we will be taking the DFI model abroad. There is less competition and greater potential in this area in the next 3-5 years. We aim to synergise all our 5 subsidiaries and create perfect linkages in all the organisations that we have patronage of.”

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