ICICI ESG Report - Socially Responsible Banking

Socially
Responsible Banking

At ICICI Bank, we recognise that the banking requirements of India’s rural customers aren’t always the same as those of urban customers. Over the years, we have customised our products and services as well as brought in state-of-the-art digital interventions to cater to the financial requirements of our rural customers. In addition, as a large and responsible financial institution, we undertake initiatives to promote financial literacy and further financial inclusion in unbanked and underbanked areas.

Rural and Inclusive Banking

We strive to meet the financial requirements of customers in rural and semi-urban locations. We follow a two-pronged approach, comprising financial inclusion and sustainable growth of villages, to help rural economies flourish and maximise their potential. Our rural strategy is focussed on offering complete financial solutions to customers. We also serve rural value chains by identifying large ecosystems and leveraging opportunities within these ecosystems.

Farmers with their new tractor financed by ICICI Bank at Nagapattinam, Tamil Nadu

We have been offering a comprehensive range of financial products and services to this segment supported by access through multiple channels, digital solutions and strategic partnerships. Our wide range of banking solutions for rural markets range from working capital loans for growing crops to financing of post-harvest activities, farm equipment loans, financing against warehouse receipts and loans against gold jewellery. In addition, we also offer banking products for their personal use such as personal loans, affordable home loans and auto and two wheeler loans. Further, we offer financial solutions to micro-finance institutions, self-help groups, co-operatives constituted by farmers, corporations as well as medium enterprises engaged in agriculture-linked businesses.

Promoting financial inclusion is a key focus area for us and it has been our endeavour to provide financial services to the unbanked regions in the country. We have actively pursued opening of Basic Savings Bank Deposit Accounts (BSBDA) among the rural population, including those in unbanked regions. This has been made possible through a network of branches and Business Correspondents (BCs), and also by offering digital solutions for payments and transactions.

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The approach to our rural strategy revolves around serving rural value chains by leveraging opportunities in different ecosystems within the rural markets. Our operational structure and offerings put us in a unique position to execute the strategy. At the core of this approach are six main ecosystems identified in the rural market. They are: agriculture, dealers, selfemployed, corporates, institutions and microentrepreneurs. Keeping in mind the needs of each of these varied groups, we have tailormade several products, services and digital solutions to meet the needs of every participant. An example of this approach is the bouquet of financial solutions that we provide to farmers and other participants of the dairy ecosystem. The range of solutions include term loans and working capital loans to dairy unions, digital payment solutions, and promoting investments in animal husbandry. ICICI Foundation supplements these solutions by providing skill training to these ecosystems. Apart from meeting the financial requirements for business purposes, we also offer products to meet the personal requirements of participants in the rural ecosystem.

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ICICI Bank is committed to be a financially inclusive organisation in India. We undertake various efforts to reach out to the customers in rural areas. Cumulatively, we have opened 21 million Basic Savings Bank Deposit Accounts (BSBDA), the largest number by a private sector bank in India. Of these, around 4.7 million accounts were opened under the Pradhan Mantri Jan Dhan Yojana. This has been made possible through a network of branches and Business Correspondents (BCs), and by offering digital solutions for payments and transactions. We also hand-hold and encourage our account holders to transact digitally.

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At ICICI Bank, we have focussed on providing financial assistance to the people employed at the grassroot level in the rural economy. We recognise that there are specific segments of the rural economy that require a more supportive and sensitive response to their financial requirements. There are initiatives by the Bank to specifically address the needs of such segments. Under the Self-Help Group-Bank Linkage Programme (SBLP), we encourage the idea of entrepreneurship among underprivileged rural women and help them earn sustainable livelihoods. Self-Help Groups (SHGs) refer to homogeneous groups made by less than 20 individuals/women engaged in livelihood activities. They pool their savings and support one another in times of need.

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Our operational structure ensures that we can meet the holistic financial needs of rural customers at their doorstep. We deliver financial and banking solutions to India’s rural population, through an extensive network of branches and ATMs across the country. Additionally, the Bank has Business Correspondents (BCs), who provide last-mile access to remote regions.

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Case Study

Using Satellite Data to Assess the Credit Worthiness of Farmers

ICICI Bank’s continuous efforts to provide state-of-the-art and futuristic digital solutions to its rural customers led it to use satellite data to assess the creditworthiness of farmers in a contactless manner. This helped both customers and employees, especially during the pandemic, to get access to reliable information without having to visit the land.

Rural and Inclusive Banking

ICICI Bank’s continuous efforts to provide state-of-the-art and futuristic digital solutions to its rural customers led it to use satellite data to access credit worthiness of farmers in a contactless manner. This helped both customers and employees, especially during the pandemic, to get access to reliable information without having to visit the land.