Brazil

The country's oldest surviving bank is Banco do Brasil, founded in 1808. The bank was the monetary authority till 1967, when it passed on this function to the

Central Bank of Brazil. There were once about 340 commercial banks in Brazil, but subsequent reforms reduced their numbers significantly.

Restructuring took place in three stages, beginning 1994. The first phase was characterised by state intervention and liquidation. In the second phase, restructuring of private and state-owned banks took place, with the objective of strengthening the banking system and reducing the role of the state. The third phase marked the entry of foreign banks.

Reaching out to the unbanked

Sweet deal. ICICI offers DSCL’s supplier-farmers a line of credit, at 9-9.5 per cent, against their produce. DSCL knows how much cane a farmer supplies, based on which ICICI sets a credit limit for him. Of every Rs 100 spent by him, he has to use Rs 70 to shop in Haryali Kisaan Bazaar, a one-stop retail shop of DSCL Sugar. This partnership gives ICICI security to lend, DSCL captive business and farmers credit on easy terms.

Spreading his wings. For his second poultry farm, Vijay Kumar, 32, borrowed Rs 1.5 lakh from Allahabad Bank. He’s hatching plans for a third farm, spread over two acres in a village near Shahjahanpur, for which ICICI is lending him Rs 10 lakh. “I’ve heard private banks are efficient, and I want to try them out,” he says.

Branching out. Delpanderwa is ICICI’s first rural branch, covering 800 villages spread over a radius of 80 km. Set up in June 2005, the branch has so far lent Rs 6.5 crore to 2,800 farmers, through a cash card (the DSCL tie-up) as well as individual loans. On the anvil: biometric cards that list personal information and credit history of the holder, life insurance and weather insurance.

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