MICROCAPITAL BRIEF: Yes Bank’s Sampann, Housing Development Finance Corporation (HDFC) Bank Use “Doorstep” Banking in Rural India

Two private commercial banks based in the Indian city of Mumbai, Yes Bank and the Housing Development Finance Corporation (HDFC) Bank, reportedly have started using “doorstep” banking in rural India to reach more customers by offering services such as credit, savings and insurance at customers’ homes. The banks also are leveraging technology to create credit histories for people outside of the formal financial system. Further details on this strategy are unavailable.

Yes Bank’s pilot model for doorstep microfinance, Sampann, was developed in collaboration with US-based NGO Accion International and serves 6,600 customers as of April 2014.

As of fiscal year-end 2013, Yes Bank reported INR 991 billion (USD 16.0 billion) in total assets, return on assets of 1.5 percent and return on equity of 24.8 percent. HDFC Bank reported total assets of INR 4 trillion (USD 66.5 billion) as of March 31, 2013. Further financial information on HDFC Bank is not available.

By Juan Blanco, Research Associate

About Yes Bank

Yes Bank is a private-sector, commercial bank headquartered in the city of Mumbai, India. The bank’s business lines include wealth management and institutional, corporate, investment and retail banking. The bank has developed a microfinance initiative known as “Yes Sampann” in collaboration with Accion, a US-based microfinance nonprofit organization. As of fiscal year-end 2013, Yes Bank reported INR 991 billion (USD 16.0 billion) in total assets, return on assets of 1.5 percent and return on equity of 24.8 percent.

About Housing Development Finance Corporation Bank Ltd (HDFC)

HDFC Bank Limited was incorporated by Housing Development Finance Corporation Limited (HDFC), a private-sector Indian housing finance company, when the Indian government began allowing the establishment of private sector banks in 1994. HDFC Bank offers a range of services to retail and wholesale banking customers, as well as specialized services for non-resident Indians. Headquartered in the city of Mumbai, the bank has a network of 2,150 branches in 1,140 cities across India. The bank reported total assets of INR 4 trillion (USD 66.5 billion) as of March 31, 2013.

Sources and Additional Resources

[1] Business Standard, “Bandhan signals competition for rural microfinance” by Namrata Acharya, April 2014, http://www.business-standard.com/article/finance/bandhan-signals-competition-for-rural-microfinance-114041100749_1.html

MicroCapital, July 18, 2011, “Costs Decrease, Account Openings Increase via India’s Branchless Banking Model, Microfinance Institutions Remain Excluded,” https://www.microcapital.org/microcapital-brief-costs-decrease-account-openings-increase-via-india’s-branchless-banking-model-microfinance-institutions-remain-excluded/

MicroCapital Universe Profile: YES Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Yes+Bank

MicroCapital Universe Profile: HDFC Bank Ltd, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=HDFC+Bank

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