HSBC ties up with Mann Deshi Bank for microfin

Hongkong and Shanghai Banking Corporation (HSBC) has signed an arrangement with Mann Deshi Mahila Sahakari Bank, based out of Mhaswad, in Satara, Maharashtra, under which the latter will operate as HSBC's corresponding bank and also help identify borrowers for microfinance schemes.

The arrangement was signed by Naina Lal Kidwai, country head, HSBC, and Chetana Gala Sinha, chairperson, Maan Deshi Mahila Sakakari Bank, on Saturday.


Kidwai said HSBC would offer its cash management system for the co-operative bank's customers to help them cut down the time lag between depositing a cheque and actual colleciton of funds.

"The cheque collection procedure currently takes up to three weeks and HSBC's cash management system will help this lead time come down to nearly half," Kidwai said.

Mann Deshi Bank will also extend microfinance assistance to its members to undertake activities in self employment for which HSBC has extended a financial support of Rs 45 lakh.

The arrangement is akin to a 'line of credit' between the two banks.

"Though HSBC's exposure to microfinance is limited at present, we will identify more such opportunities where we can participate in the process of economic self reliance of rural women," Kidwai said.

The next innovation in the area will come from such engagements, she said.

Kidwai said HSBC was studying how it can replicate its experiences in Mexico and some Asian countries to offer microfinance to women in urban slums.

HSBC has extended microfinance assistance of Rs 35 crore in the last 18 months, she said.

Chetana Gala Sinha said the arrangement with HSBC was a milestone in the progress of women in the rural areas.

"Efforts such as this will help bring these marginal self employed women from rural India into the country's economic mainstream," she stressed.