10 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com

RBL aims to be big in Bank

Rural & Agriculture Banking Sector

RBL Bank is one of India's

fastest growing banks serving

over 14 lakh customers

through its 183 branches; and

h a s d e l i v e r e d a s t o n g g r o w t h

performance in FY 1415. One of the

notable factors responsible for the

Bank's growth has been signicant

growth in Priority Sector Lending

Business. The Bank has achieved all its

Priority Sector Lending as well as all sub

sector targets for three years in a row

including FY15. During FY 1415 the

Bank's priority sector lending was seen

at 47.86% as against mandated 40%.

The bank has been honored as Best

Bank Priority Sector Lending (Private

Sector) at Dun & Bradstreet Banking

Awards and as a Global Growth

Company by the World Economic

Forum in 2014. RBL Bank has also been

recognised as India's Fastest Growing

MidSized Bank for three years in a row

by Business Today KPMG India's Best

Bank Study.

Speaking to Agriculture World,

Manoj Rawat, Head of Agribusiness at

RBL Bank says, Agriculture, Rural

Banking and Financial Inclusion will be

next driver of growth for Indian banking

Industry. An inclusive banking system

has become a top priority to drive

growth in the country and also to

address the two key areas of concern

namely, Financial Inclusion and Food

S e c u r i t y. T h e s e t w o a re a s a re

'intertwined' and are set to drive the

next phase of economic growth of the

country which will be alot more

parcipave, broad based & inclusive.

1. What are the emerging opportuni

es for banks in Rural India?

A quiet yet sound revoluon is

taking place in rural India where

economic growth is not just about

creang wealth but also oering huge

opportunies for banks to service the

nancially excluded. Today Rural

Banking is being seen as a huge

opportunity,with rural nancial services

being one of the fastest growing

segments.

It is being increasingly recognized

that Rural Business, Agriculture

Business, Food Security, Financial

Inclusion and MSME are serious

business opportunies which can help

develop a robust Rural Business model.

The basket of products that Rural India

requires will be far more wholesome

than of Urban India. The various

segments which are going to see the

next big growth opportunity include

Agribusiness, MSME, Rural Housing,

Renewable Energy and Services.

2 . W h at i s t h e s i g n i ca n c e o f

Agriculture in the Indian economy?

Agriculture sector remains the

mainstay of the Indian economy

(although it contributes about 14% of

Riding on strong growth trajectory, Ratnakar Bank

Limited (RBL) aims to provide holistic services to farmers and

rural customers with Value Chain approach.

AEFI RBL Bank Rural & Agriculture Banking Sector aims to be big in

2015 MAY ISSUE-5 AGRICULTURE WORLD 11www.krishijagran.com

the naonal Gross Domesc Product

(GDP) as 60% of Indian families are sll

dependent on agricultural income for

livelihood. India today is the largest

producer of milk, pulses and spices. The

country alsomaintains the largest cale

herd and covers the largest area under

w h e a t , r i c e a n d c o o n . W h i l e

agriculture share in India's economy has

connued to decline due to the high

growth rates of the industrial and

services sectors, the agriculture sector's

importance in India's economic and

social wellbeing goes well beyond this

indicator.

3. What is the approach of RBL Bank

towards Agr icu l ture and Rura l

Banking?

Agribusiness credit is the most

crical nonland input in agriculture and

has played a pivotal role in increasing

agricultural producon in India.

Although Agricredit has its own

statutory signicance and generates a

strong goodwill with the Regulator and

Government, at RBL Bank we approach

this as a huge business opportunity

rather than an obligaon. We believe

Rural & Agriculture business oers huge

business potenal and can generate

sustainable economic value to the Bank,

farmers, customers and our other

stakeholders. At RBL Bank we have

idened Agribusiness and Rural

banking as one of the key areas for

growth, and a driver for expansion of

branch networks in SemiUrban and

Rural India.

The Bank adopts a vepronged

approach to increase its relevance in

Rural India

Focus on direct farmer banking requirements,

Develop innovave products and market specic schemes for

farmers and rural customers,

Tap the enre value chainincluding farmers, arsans and other players

in the dierent catchments,

I n c r e a s e o u t r e a c h t h ro u g h expansion of instuonal network

and use of technology and

Work with farmers and corporates t o fo rg e b o t h fo r w a rd a n d

backward linkages .

4. How have you modelled your

Agriculture business?

The Agribusiness for our bank has

been modelled to address the dierent

target markets in a focussed manner

across the value chain.

AEFIRBL Bank Rural & Agriculture Banking Sector aims to be big in

10 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.com

RBL aims to be big in Bank

Rural & Agriculture Banking Sector

RBL Bank is one of India's

fastest growing banks serving

over 14 lakh customers

through its 183 branches; and

h a s d e l i v e r e d a s t o n g g r o w t h

performance in FY 1415. One of the

notable factors responsible for the

Bank's growth has been signicant

growth in Priority Sector Lending

Business. The Bank has achieved all its

Priority Sector Lending as well as all sub

sector targets for three years in a row

including FY15. During FY 1415 the

Bank's priority sector lending was seen

at 47.86% as against mandated 40%.

The bank has been honored as Best

Bank Priority Sector Lending (Private

Sector) at Dun & Bradstreet Banking

Awards and as a Global Growth

Company by the World Economic

Forum in 2014. RBL Bank has also been

recognised as India's Fastest Growing

MidSized Bank for three years in a row

by Business Today KPMG India's Best

Bank Study.

Speaking to Agriculture World,

Manoj Rawat, Head of Agribusiness at

RBL Bank says, Agriculture, Rural

Banking and Financial Inclusion will be

next driver of growth for Indian banking

Industry. An inclusive banking system

has become a top priority to drive

growth in the country and also to

address the two key areas of concern

namely, Financial Inclusion and Food

S e c u r i t y. T h e s e t w o a re a s a re

'intertwined' and are set to drive the

next phase of economic growth of the

country which will be alot more

parcipave, broad based & inclusive.

1. What are the emerging opportuni

es for banks in Rural India?

A quiet yet sound revoluon is

taking place in rural India where

economic growth is not just about

creang wealth but also oering huge

opportunies for banks to service the

nancially excluded. Today Rural

Banking is being seen as a huge

opportunity,with rural nancial services

being one of the fastest growing

segments.

It is being increasingly recognized

that Rural Business, Agriculture

Business, Food Security, Financial

Inclusion and MSME are serious

business opportunies which can help

develop a robust Rural Business model.

The basket of products that Rural India

requires will be far more wholesome

than of Urban India. The various

segments which are going to see the

next big growth opportunity include

Agribusiness, MSME, Rural Housing,

Renewable Energy and Services.

2 . W h at i s t h e s i g n i ca n c e o f

Agriculture in the Indian economy?

Agriculture sector remains the

mainstay of the Indian economy

(although it contributes about 14% of

Riding on strong growth trajectory, Ratnakar Bank

Limited (RBL) aims to provide holistic services to farmers and

rural customers with Value Chain approach.

AEFI RBL Bank Rural & Agriculture Banking Sector aims to be big in

2015 MAY ISSUE-5 AGRICULTURE WORLD 11www.krishijagran.com

the naonal Gross Domesc Product

(GDP) as 60% of Indian families are sll

dependent on agricultural income for

livelihood. India today is the largest

producer of milk, pulses and spices. The

country alsomaintains the largest cale

herd and covers the largest area under

w h e a t , r i c e a n d c o o n . W h i l e

agriculture share in India's economy has

connued to decline due to the high

growth rates of the industrial and

services sectors, the agriculture sector's

importance in India's economic and

social wellbeing goes well beyond this

indicator.

3. What is the approach of RBL Bank

towards Agr icu l ture and Rura l

Banking?

Agribusiness credit is the most

crical nonland input in agriculture and

has played a pivotal role in increasing

agricultural producon in India.

Although Agricredit has its own

statutory signicance and generates a

strong goodwill with the Regulator and

Government, at RBL Bank we approach

this as a huge business opportunity

rather than an obligaon. We believe

Rural & Agriculture business oers huge

business potenal and can generate

sustainable economic value to the Bank,

farmers, customers and our other

stakeholders. At RBL Bank we have

idened Agribusiness and Rural

banking as one of the key areas for

growth, and a driver for expansion of

branch networks in SemiUrban and

Rural India.

The Bank adopts a vepronged

approach to increase its relevance in

Rural India

Focus on direct farmer banking requirements,

Develop innovave products and market specic schemes for

farmers and rural customers,

Tap the enre value chainincluding farmers, arsans and other players

in the dierent catchments,

I n c r e a s e o u t r e a c h t h ro u g h expansion of instuonal network

and use of technology and

Work with farmers and corporates t o fo rg e b o t h fo r w a rd a n d

backward linkages .

4. How have you modelled your

Agriculture business?

The Agribusiness for our bank has

been modelled to address the dierent

target markets in a focussed manner

across the value chain.

AEFIRBL Bank Rural & Agriculture Banking Sector aims to be big in

Retail Agribusiness:The Bank is leveraging on the strength of its

exisng branch network and also

some new branchesthat are being

rolled out, to expand and grow its

Agribusiness porolio. Besides

historical branches, which have

rich Agribusiness potenal, many

new branches have been idened

which oer large Agribusiness

potenal in Retail and Commodity

business. Banks oer Smart ATM

cumDebit Card on Rupay Plaorm

to its farmers under Kisan Credit

Card Scheme. Retail Agribusiness

has become one of the major

thrust areas for banks.

Wholesale Agribusiness & Value Chain Finance: The wholesale

Agribusiness and Value Chain

Finance forms an important

segment of Agribusiness which

addresses the key corporate and

instuonal relaonships in

agricultural sector to enable bulk

farmer funding deals. It works with

Sugar factories, Dairies, Plantaon

companies , Agroprocess ing

industries, Agriinput companies

etc.

Commodity Finance and Pledge Finance: Commodity Finance and

Pledge Finance to farmers against

hypothecaon of agricultural

produce (including warehouse

receipts) has been idened as

another segment for growth of

A g r i b u s i n e s s . R B L B a n k h a s

already launched Warehouse

Receipt F inancing program,

wherein credit facilies are being

extended to farmers, processors

and grader sorters, primarily based

on the underlying asset i.e. Agri

commodies. Our Bank oers

commodity nance for both

perishable and nonperishable

commodies.

R B L Bank has been oering

products to its farmers and rural

customers for Renewable Energy,

MicroIrrigaon, Hitech culvaon,

Agriwarehousing and Agrimarkeng

Infrastructure. Ourbank is working with

various innovave projects namely,

M o d e l v i l l a g e s , B e e r W a t e r

Management iniaves, Improved

C a l e M a n a g e m e n t p r o g r a m ,

Livelihood enhancement projects and

Farm mechanizaon.

5. What is key to deliver agriculture

credit to farmers?

The ow of credit to agriculture has

i n c r e a s e d s i g n i c a n t l y i n t h e

recenmes. This year the instuonal

agriculture target is more than Rs. 8

Lakh Crores.Although the amount of

agricultural credit has increased

substanally, during the last few years,

the access to formal sources of credit

has been inadequate for small and

marginal farmers (who constute for

more than 80% of the farming

community). Banks have to come up

with innovave products to address the

credit and banking needs of smaller

farmers. Our bank has a special focus on

small and marginal farmers and has

developed innovave products which

cater to the needs of these smaller

segments. We are using our Bank's

outreach program and technology

frameworks to address the banking

needs of smaller customers. It has been

our endeavor to oer a comprehensive

suite of short term & long term nancial

products to famers inorder to give them

a wholesome, aordable and ecient

banking experience.

6. What kind of framework is needed

to increase banking outreach to the

last mile in the country?

The Financial Inclusion iniaves of

the Government and Regulator to

provide access to banking services at all

villages through Branches, Ultra Small

Branches, Mobile Banking, ATM or

Kiosks or Business Correspondents at an

aordable cost is going to change the

banking landscape in India. Banks are

gearing up by upgrading the technology

infrastructure to include core banking

soluons, mobile and internet banking,

Mobile ATMs, Smart Cards with the

objecve to reduce the cost of

transacons, improve customer

Manoj Rawat

Head, Agribusiness Group, RBL Bank

Manoj.rawat@rblbank.com

hp://www.rblbank.com

Manoj Rawat is Head of

Agribusiness at RBL Bank

Limited (Formerly : The

Ratnakar Bank Limited) and

has more than 20 years

e x p e r i e n c e i n R u r a l ,

Agriculture and Financial

Inclusion.

experience and build a compeve

edge for themselves.

However, the sustainable success

of the F inancia l Inc lus ion and

Deepening iniaves will be achieved

by adopng an approach wherein all

s t a k e h o l d e r s w o r k o n t h i s

Commercially viable proposion &

Value Creaon opportunity rather

than only a Government or Regulator

driven mandate.

For banks the challenges do remain

but the willingness to move from an

o b l i ga t o r y t o o p p o r t u n i t y

approach, from Class to Mass

banking and from Exclusive to

Inclusive strategy will remain key.

Bankswill need to work High Volume

b u s i n e s s w i t h t e c h n o l o g y a n d

innovaonasthe key drivers. The

various iniaves of the policy makers,

regulator and banks in this direcon

isgoing to transform Rural India and

pave the way to achieve true & lasng

nancial inclusion and would also

contribute to creangsustainable food

and nutrional security for the country.

At RBL Bank we see Rural as the next

big opportunityas wework towards

becoming one of theadmired leaders in

this segment.

AEFI RBL Bank Rural & Agriculture Banking Sector aims to be big in

House Hold Economy of

a Farmer in India

The word farmer in the tle of

this arcle refers to the one

who actually culvates the

land and not the one who

merely owns the land. They may be

small or marginal farmers, or those who

are tenant culvators or share croppers

or agricultural labourers. In short the

term refers to all those who are

depending solely on farming for the

lively hood of their families. This paper

on the House Hold Economy of a

farmer in India, tries to highlight some

of the hidden areas of economic

situaon of the farmers in India.

THE WORD FARMER REFERS TO THE

ONE WHO ACTUALLY CULTIVATES

THE LAND AND NOT TO THE ONES

WHO MERELY OWNS THE LAND.

There are two aspects in human

life: existence and development:

existence refers to physical existence;

whereas development means both

physical and mental. In the case of

animals existence and development

refers to physical and not mental but in

the case of human beings existence and

development means both physical and

mental. For a human being existence

without development is meaningless

and development without existence is

impossible. Every human has a right to

adequate and sucient means and

materials for his physical and mental

development. Hence the rst thing we

need to keep in mind is that both

existence and development cost (cost

of living) the individual or family and

second thing is that the cost goes on

increasing year aer year if not month

aer month.

FOR A HUMAN BEING,

EXISTENCE WITHOUT

DEVELOPMENT IS MEANINGLESS

AND DEVELOPMENT WITHOUT

EXISTENCE IS IMPOSSIBLE. EVERY

HUMAN HAS A RIGHT TO

ADEQUATE AND SUFFICIENT

MEANS AND MATERIALS FOR HIS

PHYSICAL AND MENTAL

DEVELOPMENT.

Broadly the costs of living in any

f a m i l y a r e t w o t y p e s : f o o d

expenditures and non food expendi

tures. For the food consumpon the

most accepted standard for India is

what is recommended by the Indian

C o u n c i l o f M e d i c a l R e s e a r c h

(ICMR,1981) in order to ensure supply

of enough energy, proteins, 15 vitamins

and 24 minerals.

Esmaon of food expenditure

Given below is a list of food items

(Table 1) that make up the balanced diet

and the minimum average amount per

person per day in a family of six (we shall

term it as per familyhead) which is

AEFIHouse Hold Economy of a Farmer in India

2015 MAY ISSUE-5 AGRICULTURE WORLD 1312 ISSUE-5 MAY 2015AGRICULTURE WORLD www.krishijagran.comwww.krishijagran.com