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ICICI Bank evolves two-pronged strategy for agri sector
Mumbai, Sept 14: ICICI Bank has evolved a two-pronged strategy to further penetrate the agricultural sector even as the country`s largest private banking entity expects to disburse over Rs 2,000 crore in this segment during the current fiscal ending March 2004.
Mumbai, Sept 14: ICICI Bank has evolved a two-pronged strategy to further penetrate the agricultural sector even as the country's largest private banking entity expects to disburse over Rs 2,000 crore in this segment during the current fiscal ending March 2004.
"We have chalked out a two-pronged strategy targetting the wholesale and retail segment separately in the agriculture sector. The former will involve working with agri-marketing companies and co-operatives while the latter entails dealing directly with the farming community," ICICI Bank executive director Nachiket Mor told news agencies here today.
On the wholesale side, the bank has embarked on a pilot project wherein the interest rate would be linked with the operating performance of the borrower, he said.
The basic objective of this scheme is to reward the borrower for a good performance, he said.
Mor, however, added that it is still on a "pilot basis" and would be optionally available to borrowers seeking loans of Rs 50 crore and above.
Referring to the retail sector, the executive director of the country's largest private sector bank said they have tied up with Rallis India, DCM Sriram, Eid Parry and Mahindra's Shubalabh for providing end to end facilities to the farmers as a one-stop facility.
On disbursements in agricultural sector, he said in 2002-03 they had reached a level of around Rs 2,000 crore and in current fiscal the bank would be more aggressive and financing is expected to exceed last year's amount.
Bureau Report
On the wholesale side, the bank has embarked on a pilot project wherein the interest rate would be linked with the operating performance of the borrower, he said.
The basic objective of this scheme is to reward the borrower for a good performance, he said.
Mor, however, added that it is still on a "pilot basis" and would be optionally available to borrowers seeking loans of Rs 50 crore and above.
Referring to the retail sector, the executive director of the country's largest private sector bank said they have tied up with Rallis India, DCM Sriram, Eid Parry and Mahindra's Shubalabh for providing end to end facilities to the farmers as a one-stop facility.
On disbursements in agricultural sector, he said in 2002-03 they had reached a level of around Rs 2,000 crore and in current fiscal the bank would be more aggressive and financing is expected to exceed last year's amount.
Bureau Report