Transcript Rural Banking

Rural
Banking
Rural Banking - Background
Pakistan has great potential in agriculture. About 27% of the
total 80 million hectares of the country is under cultivation.
Agriculture contributes about 21% of the GDP and employs
more than 43% of the labour force.
Total Universe of 8 million Rural Households
Total Potential as per GDP Rs. 7.0 Trillion
Paradigm shift in Rural Economy from seasonal to perennial cash flow
generating activities(tunnel farming, Dairy Farming Livestock and Poultry
Etc.)
• Total deposits Rural Deposits as per SBP (2015) 550Billion.
• Huge Potential for the growth.
• Extensive Branch Net Work is the key in taping that potential.
Source: State Bank of Pakistan
UBL- Rural Banking
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Introduction:
Rural Banking is Oriented towards meeting the needs of Specifically Rural
Population,
consisting
of
Farmers,
Agri-laborers,
Artisan
&
Rural
Entrepreneurs
UBL Rural Banking is a financial inclusion drive for bringing rural population to
the formal banking network. UBL presence in the rural communities will help
Rural Banking in establishing a lasting relationship with rural customers.
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Objective
The prime objective of UBL Rural Banking will be focusing economic and
above economic size farmers / land holders, small size rural businessmen,
agriculture based business in the rural areas for financial inclusion and low
cost deposit mobilization.
Pakistan: Fact-File
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Total Population
191 million
•
Rural Population
116 million
(66%)
•
Total Rural Households
8 million
•
Banked Rural Households
2.2 million
•
Rural Share to GDP
~51%
•
Contribution to Labor Force
43.7%
116M
(66%)
77M Adult Rural Population
Huge untapped
Rural population
chunk, represents
our target market.
2.2M
27.5%
•
Contribution to Exports
60%
5.8M
72.5%
Source: SBP & Economic Survey of Pakistan
75M
(34%)
Why Rural Banking is important to UBL?
 Potential of Huge Business Volume
 Comparatively High Margins
1340 UBL
Branches
Mardan
Islamabad
Rawalpindi
Muzaffarabad
Peshawar
 SBP & GoP focus
Gujrat
Dera Ismail Khan
Mirpur
Jhelum
Sargoda
Faisalabad
Sialkot
Gujranwala
Multan
“Muscle Power”
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Foot-Print of 1300 + Branches
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Strong brand recognition due to historical
presence, vast branch network and
services offered
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Focus on product penetration across all
segments in particular infrastructure and
project finance, consumer, agriculture and
SME
Lahore
Bhawalpur
Quetta
One of the biggest Commercial Banks in
Pakistan
Sahiwal
Sukkur
Karachi
Hyderabad
600 Rural
Branches
Objective
Poverty Alleviation
 Uplift of Rural Masses by extending
credit to the small scale Economic
Activities
Financial Intermediation
 Increasing the accessibility of banking
Services to the poor in a commercially
sustainable manner
Marketing
Strategies
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Developmental Marketing
Variable Lending Rates
New product lines & Delivery Models
Development of customized ATM
ATM enabled Kissan Cards
Developing Franchise Model
Partnership with NGOs for financing
Simplified & accessible Loan
procedure
Opportunities
 Sourcing of Agri produce from rural
areas for urban/global markets
 Increasing Cororate interest in AgriBusiness
 Strengthening Loan Recoveries
 Lower level of Non-Performing assts
(NPAs) in rural areas
 Large Untapped Market
Conclusion
Develop a Rural Specific Marketing Mix
The NEXT biggest challenge for Pakistani
banks is to capture the banking business
of over 50% population of 200 million
Serving Banking Needs of Rural Pakistan
Value Chain Linkages
One of the main player in Rural lending
amongst commercial banks
Good portfolio health –NPL decreasing
Employs a Dedicated field force across
Pakistan
Robust Structure; Field force at regional
level is backed by Clusters & HOK
Research
Product
development
Crop
Business
management
Non- Crop
• Animals
• Dairy & Livestock
• Fishery
• Poultry
• Crop, Seed,
Fertilizer
• Tractors
• Tubewells
• Infrastructure
• Thresher
Partner/ alliance with leading corporate
institutions and multilaterals
Structured to market both asset & liability
products in the core rural regions
Product
management
Rural Assets
Borrower
Assessment
Facility &
Security
Assessment
Cash Flow
Analysis
Sanction,
Monitoring
& Collection
UBL- Rural Banking
To meet Financial Needs of Rural Area customers
UBL Rural Banking
Lending
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Microfinance/Small
Enterprise Loans
Kissan Credit Card
Agri Insurance
Marketing of Mutual
Fund
Partnering to extend further;
30,000+ Omni Dukans
116 branches
Market Niche
Rural Banking
Farmers
Agro Enterprises
Households
Teachers
Distribution Facilities
Workers
Wider Consumer Choices:
Insurance – Debit / Credit Cards – ATMs – Remittances Cards – Mobile Banking
Traditional Needs
New Needs
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Farm loans
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Phone Banking
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Deposit Services
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Branchless/ Third party Services
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Remittances & Bill Payments
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ATM Services
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Cards
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Insurance
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Non Farm Loans
Thank you