By the end of 2020, Russian Agricultural Bank (RusAg, the Bank) intends to boost its rural presence to 97.2% (up 25.7 percentage points (p.p.)), by operating through branches or representatives.
“Growing our branch network or, to put it differently, facilitating access to financial services, is absolutely crucial for the localities with farming operations, given that farmers are our key target and a driver of national economy. Wider coverage will help small farms, large agribusinesses and, obviously, a quarter of Russia’s population who live in rural areas. By the end of this year we intend to grow our rural presence by another 25.7 p.p. and take it to 100% by 2022,” says Denis Konstantinov, a Deputy Chairman of RusAg’s Management Board.
With rural presence at 71.5% as of 1 July 2020, RusAg continues its expansion into rural and urban communities and has launched 20 town branches in 2020.
Kabardino-Balkaria and Mari El Republics as well as Kursk and Ryazan Regions are the four territories where the Bank has already established 100% rural presence. These are closely followed by Novgorod, Vladimir, Orel, Rostov, and Murmansk Regions; Chuvashia, Altai, Buryatia, Bashkortostan, and Kalmykia Republics (90% and more).
“Given that European Russia and the areas along its southern border have traditionally been the most populous and entrepreneurial, we have achieved a strategic target there by securing rural presence at the levels between 60% and 80%,” explains Mr Konstantinov.