More Stories

Informist, Tuesday, Oct. 7, 2025

 

--NABARD Dy MD: To launch IT solution for rural co-op banks by March 

--NABARD Dy MD: IT solution for rural co-op bks to spur lending 

 

MUMBAI – The National Bank for Agriculture and Rural Development aims to launch a comprehensive digital solution for rural co-operative banks in the second half of the current fiscal year ending March, Deputy Managing Director Goverdhan Singh Rawat said. The intention is to improve the lending ability and reduce costs for these institutions, which is likely to spur some credit offtake.

 

The process of digitising rural co-operative banks, a key part of the lending infrastructure, would cover 90% of the participants. Around 70% of the work is already done, Rawat said at the Global Fintech Fest 2025 here.

 

India has become one of the top markets in the world when it comes to the rural financial system, but its credit-to-GDP ratio of 56% allows for room to scale significantly, Rawat said. Challenges remain in giving out first-time credit, and outreach and digitisation programmes in remote areas.

 

Digitisation was bringing down the high cost of doing business in areas, and there was significant demand for asset, liability and wealth management products through the mode, said Rajneesh Karnatak, managing director and chief executive officer of Bank of India. However, hybrid and assisted models remained important with some customers as local business correspondents were essential to help cross the language barrier and with state-owned banks' employees being transferred regularly, Karnatak said.

 

The bank was able to use artificial intelligence and machine learning to gauge the ability of customers to repay. It had also launched several models and products using artificial intelligence tools, such as a revolving credit facility for dairy farmers providing milk to the Amul milk co-operative in Gujarat, Karnatak said.

 

Similarly, Muthoot Microfin's Thomas Muthoot John said customers had asked for loan repayment options using the digital mode, and 35% of its microfinance borrowers repaid loans digitally. At the same time, as a private lender, Muthoot Microfin would need to have a branch network to ensure customer trust is maintained, he said, and this might reduce the potential digitalisation of the sector.

 

At 1307 IST, Bank of India's shares were up 0.8% at INR 127.10 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Aaryan Khanna

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.