U.S. Financial Volunteers in India to Help Modernize Banking Sector

April 25, 2005

NEW DELHI – U.S. financial volunteers and senior-level bankers from Chennai and Mumbai will explore innovative ways to meet the financial needs of smaller-scale enterprises in India . Beginning today, there will be workshops in Chennai (April 25-26) and Mumbai (April 27-28) – supported by the United States Agency for International Development (USAID). These workshops are the first in a series of professional exchanges between a U.S. corps of financial volunteers and India 's banking sector that aim to modernize banking operations and services in India .

In a public-private alliance with USAID, sponsors of the effort include ICICI Bank and its affiliate the Institute of Financial Management Research , and the U.S. Financial Services Volunteer Corps.

Bank lending to small- and medium sized Indian businesses is low even though the enterprises play a critical role in the country's economic growth. Developing methods to assess lending risk and creating financial products tailored to smaller businesses will trigger investments and free up potential in the sector.

Two senior American bankers, both unpaid executive volunteers with rich experience in credit analysis, will meet with Indian financial specialists to discuss the tools needed to start up lending operations to this market segment.

“The U.S.-India strategic partnership is transforming into a broader, more comprehensive relationship through people-to-people engagement in this and other sectors,” said George Deikun, USAID India Mission Director.

“The spirit of volunteerism expressed in this effort shows the best of American values and our desire to help India achieve wider prosperity,” added Deikun.

The broader financial services training effort is a one-year activity valued at about $750,000. USAID contributes about half of this amount, with the remainder coming from ICICI Bank and the Financial Services Volunteer Corps.