ICICI Bank 2009 Annual Report Download - page 43

41Annual Report 2008-2009
The Power of Belief
Promoting Inclusive Growth
ICICI Bank has always viewed Corporate Social Responsibility (CSR) as integral to its core mission of delivering
value to its stakeholders. The Bank’s CSR activities have taken three broad strategic directions: CSR through
commercial activities, CSR in partnership with civil society and CSR through the ICICI Foundation for
Inclusive Growth.
I. CSR through commercial activities
By ensuring that its products and services meet fundamental social needs, ICICI Group’s commercial activities
have for over five decades sought to provide value to its customers and society alike, through project
finance, consumer finance, technology-based retail banking and financial services for small enterprises.
ICICI Bank continues to offer value to its customers and society through its commercial activities, seeking
to build sustainable business models that are consistent with the Bank’s own growth and profitability while
simultaneously stimulating the development of all sectors of India’s economy.
Under-served customer groups: ICICI Bank’s Rural, Micro Banking and Agri Business Group (RMAG)
caters to the financial needs of farm and non-farm sectors, including under-served customer groups like
agri-enterprises, Self Help Groups (SHGs), individual farmers and low-income households. To provide access
to financial services to low-income and other under-served customer groups, RMAG has undertaken a range
of initiatives:
 Financial services for agri-enterprises: During this fiscal year, RMAG provided financial services
aggregating about Rs.151.00 billion to about 3,000 agri-enterprises, supporting the employment of
significant number of people. It provides credit and banking services to SMEs active in the agricultural
value chain and has enhanced credit access for farmers.
 SHGs and micro lending: ICICI Bank’s SHG and micro lending programmes facilitate access to financial
services for low-income households, a segment of the Indian population that ICICI Bank has been
serving for close to a decade. Through direct credit linkages to SHGs promoted by Self Help Promoting
Institutions, the Bank has provided loans to SHGs. With a micro lending book of Rs. 25.82 billion,
ICICI Bank’s micro lending initiative reached 2.58 million low-income households in India this year.
 Cattle funding: Cattle farming provides a means of livelihood for millions of farmers in India. The Bank’s
cattle funding initiative enables farmers to take a loan to purchase even a single cow, enabling small cattle
farmers to grow their dairy businesses. It has partnered with dairies to provide financing to farmers to
purchase milch cattle. During fiscal 2009, ICICI Bank disbursed cattle loans to the tune of Rs. 1.00 billion
benefiting about 31,000 farmers.
 Godown (Warehouse) Security System: Smaller farmers who need access to immediate funds are more
likely to sell their products soon after the harvest, when prices for all commodities are at their lowest. ICICI
Bank launched warehouse receipt-based financing to strengthen farmers’ inventory holding capacity by
allowing them to take a loan against the produce (stored in a warehouse) and avoid distress sales. ICICI
Bank has deployed Micro ICICI Godown Security System to monitor the warehouses. The system uses
GSM-based technology with attached wireless motion, fire and shutter sensors. Any intrusion, fire or
motion inside the godowns is detected and immediately informed to the registered user of the system.
This innovation has enabled the Bank to finance small and medium farmers and aggregators in their
godowns, making it possible for them to benefit from the increases in off-season prices.
 Small and Medium Enterprises: The Bank’s Small Enterprises Group proactively reaches out to millions
of SMEs across the country, using multiple low-cost channels such as the Internet, dedicated call centre
teams, mobile (SMS) banking, ATMs, debit and credit cards, as well as through the branch network.
About one million SMEs were extended financial services by the Bank this year. The Bank has also
promoted usage of energy and fuel-efficient technologies among SMEs and signed a Memorandum of
Understanding (MoU) with MITCON Consultancy Services Limited and Agrienergy Consultancy. These
partnerships aim to provide one-stop solutions to industries for Clean Development Mechanism (CDM)
projects and emissions trade, including carbon credit business. The Bank expects this arrangement to
benefit SMEs who want to avail a complete package of services through guidance from reliable partners
with experience in the carbon credit business.