Banking the Unbanked: The Journey of Indian Bank

The case describes the strategy of a large Indian Public Sector Bank (PSB) to enhance financial inclusion and financial literacy of less privileged people located in poorly accessible parts of India. While pursuing the developmental objective ‘imposed’ by the Central Bank/government, being a listed entity, the PSB had to be mindful of the financial viability of the strategy so as to protect the interest of its minority shareholders. The issues covered are endemic to most developing countries where public enterprises often become instrumentality of the state.