Product details

Since its entry into the Indian microfinance sector in 2001, ICICI (Industrial Credit and Investment Corporation of India) Bank, one of the largest private sector banks in India achieved remarkable progress in its portfolio. Instead of the conventional branch-banking model, it opted to differentiate its operational model, to foray into rural markets to tap lucrative opportunities in the Indian microfinance sector. Apart from basic microfinance services, it planned to offer various financial products like weather insurance, health insurance, remittance services and commodity derivatives to the rural masses. But it faced stiff competition from commercial and other foreign banks, which were determined to boost their presence in the Indian microfinance sector. Apart from that, the bank faced major challenges like information irregularity, the inability of poor people to offer collateral and a lack of credit history details. The case facilitates discussion on whether ICICI Bank will able to sustain its partnership model as the Indian microfinance sector becomes lucrative.