ABN Amro's microcredit exposure in India

ABN Amro, in a press release, says it has become profitable in its microfinance portfolio in India.

In India we apply a different model. Here we provide specialised financial intermediaries with credit who then lend the money to economically disadvantaged borrowers. This approach combines the bank's financial strength with the vast rural network of the intermediaries. In 2006 our Indian microfinance portfolio had grown to EUR 26.2 million through partnerships with 26 intermediaries across six states. Our Indian microfinance business achieved break-even within one year of start-up and continues to operate profitably.