Released on = November 6, 2006, 3:57 am

Press Release Author = RNCOS

Industry = Financial

Press Release Summary = IBN (Private Bank) has its eyes set on rural India to
increase exposure considering the huge demand for banking in Indian rural sector.



Press Release Body = ICICI Bank aims to exploit the untapped rural banking sector in
India, as huge credit demands exist in this sector. Credit demand in rural India is
expected around Rs.1,330 Billion, whereas its supply was just about Rs.40 Billion in
previous year (2005), as per Nachiket Mor- deputy MD of the bank.

The Bank plans to adopt the franchisee model for widening its reach in the rural
areas of India. Around 8,000 touch points have been established by ICICI Bank across
the country, so that it’s able to penetrate rural pockets & develop low priced
ATMs. Also, a sum of Rs.2,500 crore was disbursed by the bank toward rural sector
financing. The Bank expects that good rural credit will off take in 2006.

To provide easy loans, the bank has tied up with many FMCG companies such as Godrej
Sara Lee. The distributors of Sara Lee are provided with loans for buying Godrej
products, under the channel-financing model. The distributors, in turn, may help the
dealers in getting advances from the bank.

ICICI Bank is also providing funds to cattle farmers so they can buy fodder, under
the similar arrangement with the companies that manufacture fodder. Working in
partnership with postal department, the bank intends to expand its rural base in the
country. RMAG (Rural, Micro banking & Agri business Group) has been formed by the
bank for a more focused approach.

RNCOS has recently published a report namely “Indian Banking Sector Analysis
(2006-2007)”, which provides extensive research and objective analysis on all
aspects of the growing banking industry in India. As per RNCOS report, “World
Bank study has revealed that the current demand for credit in Rural India is
estimated to be around Rs.1,330 Billion. In addition, 32000 commercial bank branches
cover only 7% of rural sector and large market is still untapped in terms of
liability (about Rs.215 Billion) as well as asset (about Rs.1, 204 Billion) sides of
banking business.”

Key issues and facts analyzed in this report include

- How does the competitive market landscape look like for the Indian Banking Industry?
- Driving factors behind the Banking Sector in India.
- Various opportunities and challenges in this industry.
- Key players in Indian banking sector.
- Predictions about the Banking Sector in India.



About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

For more information visit: http://www.rncos.com/Report/FM005.htm
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