Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code :BSM0060A

Year : 2008

Industry : Banking, Insurance and Financial Services

Region : India

Teaching Note:Available

Structured Assignment :Available

Abstract: Since its entry into Indian microfinance sector in 2001, ICICI 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 it 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 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, inability of poor people to offer collaterals and lack of details of credit history. The case facilitates discussion on whether ICICI Bank will able to sustain its partnership model as the Indian microfinance sector becomes lucrative.