HDFC Bank enters into tie-up with IOC for rural banking

In order to offer rural banking, HDFC Bank, the leading private sector lender, has entered into a tie-up with Indian Oil Corporation (IOC). Through this tie-up IOC’s petrol pump outlets Kisan Seva Kendras (KSKs) will act as the Business Correspondents (BCs) for the banks.

The KSK outlets will offer banking services such as preliminary processing of loan applications, disbursal and collection of small value deposits, sale of micro-insurance, mutual funds and other investment instruments.

HDFC Bank plans to cover 1,000 KSKs, beginning from Pilibhit in Uttar Pradesh, in order to serve around 1,500 customers. This is yet another path breaking initiative by the bank where its board had approved mandate to bring 10 million families (40 million individuals) into the banking fold.