Bengaluru: State-run Mysore Sales International Ltd (MSIL), which has rebranded its chit fund business through a mobile application and customised chit values, is seeking to give a formal structure to its non-banking finance company (NBFC) operations and expand aggressively into rural Karnataka by roping in self-help groups (SHGs) and recently retired bankers.
As part of the expansion plan, MSIL is in talks with National Rural Livelihood Mission (NRLM) officials to use SHG Sakhis as agents to widen its subscriber base.
"NRLM is open to the idea as Sakhis have been trained in banking aspects," Manoj Kumar, managing director, MSIL told TOI. "We will consider the option on a pilot basis in old Mysuru region and use Sakhis as our agents or commercial business partners."
The SHG-based model is expected to be launched initially in Bengaluru South and Mysuru districts, before a statewide roll out. Karnataka has more than 2.5 lakh SHGs, with significant investments made to promote their financial independence.
"Sakhis will be trained in the chit fund business, and we will ask them to get people to invest," MSIL officials said, adding that the company is also considering hiring local grocery store owners as agents. "Sakhis will be given a certificate to prove they are genuine MSIL partners. Like LIC agents, they will earn a percentage of the investments they bring in."
With one-third of MSIL's one lakh chit fund subscribers from cities, the firm sees significant growth potential in rural areas where formal banking remains limited due to regulatory constraints. "With the state govt guarantee, we believe MSIL chit funds can achieve its targets. Already, as per our current estimates, the chit fund business should touch over Rs 1,000 crore this fiscal," Kumar said.
MSIL is also planning to recruit recently retired bankers to strengthen fund management. "We are looking to hire those in the 60 to 65 age group on a contractual basis to manage the business more professionally and add a certain degree of security to it," Kumar said.
A Journalist by profession, Sandeep Moudgal has an experience of ...
Read MoreA Journalist by profession, Sandeep Moudgal has an experience of 18 years in the field with Politics and Policy as forte. He is a Senior Assistant Editor with the Bengaluru bureau and Karnataka as his jurisdiction. Has a Master's degree in Ancient History and Archaeology from Mysore University along with a PGDJ from the Asian College of Journalism.
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