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Covid impact: Banks see slippages rise in cash collection-driven segments

Banking & Finance

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State Bank of India (SBI), CSB Bank and Federal Bank were among the lenders who reported an increase in non-performing assets (NPAs) in the gold loan segment.

Lenders reported a deterioration in asset quality during the April-June quarter in loan categories where cash collections play an important role. Gold loans, commercial vehicle (CV) loans and microfinance — all saw fresh bad loans inch up in Q1FY22 as the second wave of Covid-19 hampered collection activities. The absence of a moratorium on repayments, unlike last year, made the stress more evident on lenders’ books.

State Bank of India (SBI), CSB Bank and Federal Bank were among the lenders who reported an increase in non-performing assets (NPAs) in the gold loan segment. SBI’s NPA ratio in gold loans stood at 2.24% in the June quarter. Chairman Dinesh Khara attributed the high NPA ratio in gold loans to the inability of collection staff to reach borrowers amid mobility restrictions.

CSB Bank MD & CEO CVR Rajendran said last month that a fall in the prices of gold led to margin calls and demands for additional money from borrowers. This phenomenon also played a part in the rise in bad loans. Both SBI and CSB Bank said that as lockdowns are lifted, people should be able to travel to bank branches and make good the margin shortfall.

Commercial vehicle loans have also come under pressure in Q1 as lockdowns and mobility restrictions prevented the movement of trucks carrying goods and even three-wheelers used for commutes in smaller towns. Bajaj Finance said in July that the three-wheeler business, which accounts for 30% of the company’s Rs 11,347-crore auto loan portfolio, was particularly hit in the second wave.

Rajeev Jain, managing director, Bajaj Finance, said the reason slippages were under control in Q1FY21 was the loan moratorium. “We do realise and we’ve said that many times, that’s the only business where we fundamentally deal with mass customers. We were far more impacted or they’re far more impacted,” he said.

The impact of movement restrictions was yet more pronounced in rural markets. Ramesh Iyer, vice-chairman & MD, Mahindra & Mahindra Financial Services, told analysts that rural prosperity hinges on the movement of goods and that took a hit during the second wave. “The other sentiment that we saw in the rural market that impacted us is this, many of the customers did have money, but were not able to come to pay or we were not able to go and collect,” Iyer said.

Since the repayment stress in Q1 was due in large parts to lockdowns, the lifting of restrictions across most states in June had a beneficial impact on most lenders. SBI said that in the last one-and-a-half months, it has been able to pull back Rs 4,700 crore of slippages. Most other lenders, too, have reported a recovery in collection efficiencies during June and July. However, the outlook for retail asset quality remains uncertain. Most banks and non-bank lenders expect its trajectory to depend on the likelihood of a third wave of the pandemic breaking out.

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Indiabulls Housing Finance Q1 net up marginally

Banking & Finance

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Indiabulls Housing Finance registered a 3.2 per cent increase in its consolidated net profit at ₹281.69 crore for the quarter ended June 30, 2021. Its net profit was ₹272.84crore in the same period last fiscal.

Its net interest income was up 4.65 per cent to ₹765 crore in the first quarter of the fiscal from ₹731 crore a year ago.

Total revenue from operations, however, fell 9.9 per cent on a year on year basis to Rs ₹ 2,320.69 crore as on June 30, 2021.

Loan book degrew by 10.5 per cent to ₹65,438 crore in the first quarter of the fiscal as against ₹73,129 crore a year ago.

It shored up provisions on the balancesheet to ₹3,600 crore or 5.5 per cent of the loan book.

“The high provision cushion places the company’s portfolio in a strong position to negotiate any macroeconomic uncertainties stemming from second wave and expected third wave of the Covid-19 pandemic,” Indiabulls Housing Finance said in a statement on Thursday.

Net non performing assets declined to ₹1,227 crore in the first quarter of the fiscal as against ₹1,517 crore in the corresponding quarter in the previous fiscal.

“Real estate sector is in strong upward trajectory thereby providing high impetus to company’s borrowers in their business. Had the company not chosen to de-grow its book in the past one year, the above gross NPAs of 2.86 per cent would have been at 2.45 per cent,” it further said.

Subsequent to the second wave of Covid-19, collection efficiency has normalised in June and July and is now at about 98 per cent.

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5 High Rated & Top Performing Small-Cap Funds To Plan SIP In 2021

Personal Finance

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Quant Small Cap Fund Direct Plan Growth

Quant Small Cap Fund Direct Plan-Growth is a Small Cap mutual fund of its category that was founded by Quant Mutual Fund in 2013 and has been in operation for the past eight years. According to the data of Value Research, the past year’s growth returns were 150.73 percent of this fund. It has returned an average of 17.10 percent every year since its inception.

The healthcare, FMCG, Chemicals, Construction, and Metals sectors account for the majority of the fund’s sector allocation. India Cements Ltd., Indiabulls Real Estate Ltd., EID-Parry (India) Ltd., Fortis Healthcare (India) Ltd., and Shree Renuka Sugars Ltd. are the fund’s top five holdings. The fund currently has an asset under management (AUM) of Rs Rs 700.52 Cr and the latest Net Asset Value (NAV) as of 04.08.2021 is Rs 132.15.

Nippon India Small Cap Fund Direct Growth

Nippon India Small Cap Fund Direct Growth

Nippon India Small Cap Fund Direct-Growth is a medium-sized small-cap fund. The fund was established in 2013 by the fund company Nippon India Mutual Fund and has been in operation for the past eight years. Nippon India Small Cap Fund Direct-Growth gains in the previous year were 110.64 percent, according to Value Research. It has returned an average of 26.62 percent every year since its inception.

Engineering, Chemicals, FMCG, Technology, and Services make up the majority of the fund’s sector allocation. Deepak Nitrite Ltd., Navin Fluorine International Ltd., TI Financial Holdings Ltd., Balrampur Chini Mills Ltd., and Birla Corporation Ltd. are the fund’s top five holdings. Currently, the fund has an asset under management (AUM) of Rs 15,353.12 Cr, and the latest NAV as of 4 August 2021 is Rs 83.71.

Kotak Small Cap Fund Direct Growth

Kotak Small Cap Fund Direct Growth

Kotak Small Cap Fund Direct-Growth is a medium-sized small-cap fund. The fund was founded in 2013 by the fund house Kotak Mahindra Mutual Fund and has been in operation for the past eight years. Kotak Small Cap Fund Direct-Growth returns in the previous year were 120.09 percent, according to Value Research. It has returned an average of 21.99 percent per year since its inception. Chemicals, Consumer Durable, Metals, FMCG, and Construction make up the majority of the fund’s sector allocation.

Century Plyboards (India) Ltd., Sheela Foam Ltd., Carborundum Universal Ltd., Persistent Systems Ltd., and Lux Industries Ltd. are the fund’s top five holdings. The fund currently has Rs 4,765.50 Cr in assets under management (AUM) and a NAV of Rs 168.37 as of 4 August 2021.

BOI Axa Small Cap Fund Direct Growth

BOI Axa Small Cap Fund Direct Growth

BOI AXA Small Cap Fund Direct-Growth is a Small Cap mutual fund scheme that was introduced by BOI AXA Mutual Fund in the year 2018 and has been in operation for the last two years. According to Value Research, the BOI AXA Small Cap Fund Direct has a 1-year growth return of 108.49 percent. It has generated an average yearly return of 42.72 percent since its inception.

Central Depository Services (India) Ltd., Laurus Labs Ltd., Sequent Scientific Ltd., Firstsource Solutions Ltd., and KPIT Technologies Ltd. are the fund’s top five holdings. The fund has equity sector allocation across chemicals, financial, technology, healthcare, FMCG, services, and construction. As of 4 August 2021, the fund has Rs 158.22 Cr in assets under management (AUM) and a latest NAV of Rs 25.29.

Canara Robeco Small Cap Fund Direct Growth

Canara Robeco Small Cap Fund Direct Growth

Canara Robeco Small Cap Fund Direct-Growth is a medium-sized small-cap fund. This fund has been around for two years and six months, having been established in the year 2019. Canara Robeco Small Cap Fund Direct-Growth had a 1-year return of 103.71 percent, according to Value Research. Since its inception, it has generated an average of 36.18 percent annual returns. The fund has its equity sector allocation across financial, construction, services, chemicals, and engineering.

FAG Bearings India Ltd., Grindwell Norton Ltd., Essel Propack Ltd., KNR Constructions Ltd., and Computer Age Management Services Ltd. are the fund’s top five holdings. The fund’s expense ratio is 0.79 percent, which is comparable to the expense ratios charged by most other funds in the same category. As of 4 August 2021, the fund has Rs 1,241.52 Cr in assets under management (AUM) and a NAV of Rs 21.43.

Best Performing Small Cap Funds In 2021

Best Performing Small Cap Funds In 2021

Here are the top-performing small-cap funds in 2021, in terms of past 1 year returns and performance.

Fund 1-Year Returns 3-Year Returns 5-Year Returns Rating by Morningstar Rating by Value Research
Quant Small Cap Fund Direct Plan-Growth 150.73% 36.35% 22.83% 4 star NA
Nippon India Small Cap Fund Direct-Growth 110.64% 22.75% 23.95% 4 star 4 star
Kotak Small Cap Fund Direct-Growth 120.09% 27.65% 22.00% 4 star 4 star
BOI Axa Small Cap Fund Direct-Growth 108.49% NA NA NA NA
Canara Robeco Small Cap Fund Direct-Growth 103.71% NA NA NA NA

Disclaimer

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in



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Sundaram Finance Holdings invests ₹480 cr in buying out stakes in portfolio companies

Banking & Finance

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Sundaram Finance Holdings Ltd (SF Holdings) said it invested about ₹480 crore in consolidating holdings in a few portfolio companies in the past one year or so.

SF Holdings primarily operates as a holding company owning a portfolio of businesses engaged in various aspects of automotive manufacturing. Significant investments include Sundaram Clayton, Wheels India, IMPAL (all listed) and Brakes India and Turbo Energy (both unlisted).

While the performance of portfolio companies is improving, it is still below their results in FY20 due to the downturn in the automotive industry driven by cyclical factors as well as the impact of the pandemic, according to a statement.

“We remain optimistic on the recovery and growth of the automotive sector in the medium term and consequently we expect a recovery in the future results of the company,” said Harsha Viji, Director, SF Holdings.

Consolidating holdings

In the past one year, the holding company utilised the opportunity to further consolidate its long-term holdings in its portfolio. “We have bought out foreign partners in Wheels India and Brakes India with an investment of ₹450 crore,” said TT Srinivasaraghavan, Chairman, Sundaram Finance Holdings Ltd.

The company increased its stake in Wheels India from 13.58 per cent to 23.28 per cent, through an acquisition of an additional 9.70 er cent stake from the foreign partner (Titan Europe) for a total consideration of ₹100 crore. The combined holding of the Indian promoters in Wheels India now stands at 57.53 per cent.

In Q1 this year, SF Holdings completed the acquisition of an additional 7.71 per cent stake in Brakes India Pvt Ltd for a total consideration of ₹350 crore from the foreign partner ZF International, taking its stake from 6.67 per cent to 14.38 per cent. The Indian promoters now own 100 per cent of the company.

The company also consolidated its shareholding in its foundry portfolio by acquiring a 6.84 per cent stake in Flometallic India Pvt Ltd and consequently the stake in Flometallic has increased from 40 per cent to 46.84 per cent.

Carbon fiber biz

SF Holdings made an investment of ₹23.71 crore in the carbon fiber business of Mind S.r.l., Italy for a 40.6 per cent stake.

“The carbon fibre market, though nascent in India now, has solid potential to grow in the long term, and the technology and expertise from Mind S.r.l will help position SF Holdings well in the market. In the long term, the carbon fiber operations could get partially shifted to India, which is expected to decrease manpower cost and expand margins,” said Srivats Ram, Director, SF Holdings.

SF Holdings reported net profit of ₹5.13 crore for the quarter ended June 30, compared to ₹2.85 crore in the year-ago quarter. Revenue stood at ₹10.50 crore (₹9.30 crore). Consolidated profit, including share of associate’s profit, was ₹31.58 crore against a loss of ₹9.89 crore a year ago.

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How RBI’s CBDC will change the payments ecosystem

Banking & Finance

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The Central Bank Digital Currency (CBDC), currently being explored by the Reserve Bank of India (RBI) for retail and international trade payments, could have a much larger impact on the financial ecosystem, according to industry experts. It will be instrumental in promoting grassroots level financial inclusivity and modernising the banking sector apart from creating a cashless economy.

While many see CBDCs as a legalised replacement of private digital currencies or cryptocurrencies, in reality, CBDCs are just going to be a digital replica of the physical cash in circulation in the country. “RBI is creating a digital version of the fiat currency in circulation. Currently, the only alternative to physical currency is debit cards or credit cards, which are not accessible to all citizens,” Naveen Surya, Chairman, Fintech Conversion Council and Emeritus Chairman, Payments Council of India, told BusinessLine.

Also read: Why CBDC will not end bitcoin’s reign

“CBDC could be used directly through mobile phone. It can use blockchain technology but doesn’t necessarily need to be linked to a bank account to hold it. This will convert your mobile device into a wallet. In short, it will fast-track financial inclusivity while building a cashless economy,” Surya added.

India is in fact late to join the trend. Countries like Russia, Japan and China had started working on the same much earlier. According to a 2021 BIS survey, quoted in the RBI report, 86% of the central banks surveyed are actively researching the potential for CBDCs, 60% were experimenting with the technology and 14% were deploying pilot projects. “It took 4-5 years of multiple pilots before China could look into introducing digital currency,” Surya said.

Need for CBDC

“Today though we are doing e-payments and money transfers thinking they happen in real-time, but at some point, this money still has to be physically moved between the banks, known as ‘inter-bank’ settlement. With CBDCs, there won’t be the need for inter-bank settlement, your digital payments will be the final transactions,” Sharan Nair, chief business officer, CoinSwitch told BusinessLine.

Cryptocurrency exchanges lauded the move, saying that a possible widespread usage of digital currency will only boost their business and familiarise the masses with the technology and its varied forms. Though cryptocurrency isn’t necessarily looking to become a currency used for making payments. “Private cryptocurrencies are primarily seen as tradable assets. Though some countries have allowed Bitcoins to be used a mode of payment, NFTs and other cryptocurrencies are mostly assets. They don’t have the characteristics of currency and neither do they want to be,” Surya said.

Financial Transparency

A major use case for CBDCs will likely be in the insurance and lending space and also for managing non-performing assets (NPA). Using digital currencies will enable more transparency and traceability across levels for the financial services sector. The RBI at present is pondering upon the underlying technology on whether it should use distributed ledger or a centralized ledger, and a possibility of using blockchain. “In the case of lending, say if a farmer wants to take a loan to buy fertilizers and farming-related activities, at present, it is difficult of the government to verify how it is used. But with digital currency the government will be able to programme it in a manner that it can be used only for the fertilizers and not a car,” Nair explained.

“In international trade too, for instance, if an importer wants to settle a payment in the US, due to the time zone difference that will delay the transaction and due to change in dollar to rupee value, prices would have changed. CBDC can settle this in real-time without needing further intervention,” he added.

“Challenges of different vendors working with different merchants will subside once CBDC come into play. Merchants would want to use this, as this would eliminate third party payment gateway involvement, bringing down the cost of transaction fees,” Sathvik Vishwanath, Co-founder and CEO, Unocoin told BusinessLine.

Complex process ahead

Converting a part of paper money into digital currencies will surely come with its complexities and confusion. “To implement this the government authorities and the RBI would have to work on digitising the entire currency circulation model. Further, several other fundamental issues and monetary policies will have to accordingly be taken into account, as with CBDC there will be more traceability and transparency of the currency on digital network,” Surya said.

Additionally, blockchain technology in its current state might not be the most efficient way forward.

Vishwanathan said, “It doesn’t look like the RBI is looking to involve any cryptocurrency-related technology like blockchain. It will be more of a centralised wallet service like Paytm. Blockchain is not capable of handling millions of transactions per hour. Currently, bitcoin blockchain supports up to seven transactions per second and then there are some others that let a few thousand transactions per second. For a country like India, blockchain technology won’t be able to manage such an enormous volume of data.”

“Given that it is only the Indian government sponsoring this technology for its citizens which makes it a single-party creator, using blockchain will be as good as creating a regular database,” he added.

Also, increased traceability might introduce new challenges around privacy. “With blockchain, they (government) can get a partial biography of every person using the digital currency and what all he uses it to pay. That will be quite intrusive,” Vishwanathan said.

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Bank of Maharashtra launches Retail Bonanza-Monsoon Dhamaka

Banking & Finance

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Bank of Maharashtra (BoM) has waived processing fees on its gold, housing and car loans till 30 September, 2021, under its ‘Retail Bonanza-Monsoon Dhamaka’ offer.

The Pune-heaquartered public sector bank said in a statement that it is offering home loans and car loans at interest rates starting from 6.90 per cent and 7.30 per cent respectively.

Retail loans have features such as two free Equated Monthly Installments on regular repayment of home loans, loan facility up to 90 per cent in the case of home and car loans, and no pre-payment / pre-closure / part payment charges, the statement added.

The bank also revamped its gold loan scheme, whereby customers can get loans up to ₹20 lakh at 7.10 per cent interest. Further, there is no processing fee for gold loans up to ₹1 lakh.

BoM said it has set up ‘Gold Loan Points’, dedicated counters in select branches, to facilitate gold loans within 15 minutes.

Hemant Tamta, Executive Director, Bank of Maharashtra, said customers will benefit from lower rates and waiver of processing fee under the Dhamaka offer this festive season.

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RBI may deploy LTRR to mop-up excess liquidity with banks

Banking & Finance

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The Reserve Bank of India (RBI) is understood to have broached the possibility of conducting Long Term Variable Rate Reverse Repo (LTRR) auctions with banks in the run-up to the normalisation of its ultra-accommodative policy.

The central bank is exploring LTRR as an instrument to absorb surplus liquidity for a longer duration from the banking system at a time when credit demand is muted, and retail inflation is sticky.

LTRR is one of the instruments to manage durable liquidity under the RBI’s revised Liquidity Management Framework. It has a tenor of over 14 days.

However, banks are wary of locking-up liquidity for longer tenors of, say, a month or two under LTRR because in case credit demand gains steam, they will have to tap funding options such as the central bank’s repo (repurchase agreement) window, certificate of deposits, among others, to meet their demand. They may even have to increase fixed deposit rates.

Banks have indicated to the RBI that they prefer investing in treasury bills of 91 days, 182 days and 364 days duration as the bills can be easily liquidated to fund future demand for loans. However, if they invest in LTRR, this flexibility will not be available.

Banks awash with liquidity

That banks are awash with liquidity is underscored by the fact that they collectively parked ₹6,53,431 crore with the RBI’s reverse repo window on August 4, 2021. Banks earn 3.35 per cent interest (reverse repo rate) on this amount.

Further, at the last 14-day Variable Rate Reverse Repo (VRRR) auction held on July 30, 2021, the RBI received bids to park surplus liquidity aggregating to ₹3,67,428 crore against the notified amount of ₹2 lakh crore.

The central bank accepted bids aggregating to ₹2,00,033 crore, with the weighted average interest rate that banks will receive working out to 3.43 per cent.

Radhika Rao, Senior Economist, DBS, observed that the RBI’s preference to gradually draw out excess liquidity might increase the sizes of variable reverse repo rate (VRRR) auctions while reaffirming support for the ongoing Government Securities Acquisition Program.

As per Rao’s assessment, the impact of a VRRR increase might be marginal given the scale of surplus liquidity (estimated at ₹7.5-8 lakh crore) – bank liquidity plus government cash balances.

Nonetheless, it affirms the central bank’s intent to mop-up liquidity at a calibrated pace before setting the stage for a reverse repo increase and change in policy stance around the end of 2021 or early 2022, she said.

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Reserve Bank of India – Notifications

Notifications

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April 14, 2015




Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.




With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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3 Cheap Private Sector Banking Stocks To Buy In Terms Of 10-Year P/E Averages

Personal Finance

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Here are 3 cheap private sector bank stocks that are at a discount

Current price to earnings 10-year average p/e Discount
Axis Bank 14.1 37.5 -62
Bandhan Bank 13.7 24.9 -45.00%
RBL Bank 10.4 30 -65.00%

(Courtesy: Bulls & Bears India Valuation Handbook, Motilal Oswal Financial Services )

The table above shows that the stock of RBL Bank is available at a huge discount compared to long-term averages. However, that does not make the stock a buy, given that there are issues relating to NPAs and provisions. Therefore, just because the stock is available at a discount it does not automatically qualify to be picked for investment.

“Large Private Banks are carrying an additional COVID-19 provisions buffer, which should limit the impact on credit cost. We continue to prefer ICICI Bank, Axis Bank and HDFC Bank,” Bulls & Bears India Valuation Handbook, Motilal Oswal Financial Services says.

Axis Bank could be a great stock to buy?

Axis Bank could be a great stock to buy?

Axis Bank is among the top picks of brokerage firms. In fact, there are no reasons why it should trade so low and at such a discount. In fact, the price to book value for the stock is also just 1.7 times.

“Most Private Banks reported higher slippages, primarily led by the Retail and MSME segment. Gross Non Performing ratio across private banks has increased. The recovery momentum is healthy, with collection efficiencies showing a strong improvement over Jun-Jul’21. This should lead to a moderation in the slippage run-rate, mainly from 2HFY22. However, provision coverage remains healthy,” Bulls & Bears India Valuation Handbook, Motilal Oswal Financial Services says.

According to the handbook, disbursements fell sequentially across most Retail segments, while a few Banks reported a recovery in Corporate loan growth. “Large Private Banks are well-placed to accelerate market share gains, given their strong capital positions, robust balance sheets, and higher provisioning coverage on stressed assets,” Bulls & Bears India Valuation Handbook, Motilal Oswal Financial Services says.

Some PSU bank stocks are going cheap

Some PSU bank stocks are going cheap

Some government owned banks are also available at a discount to long-term averages. Several brokerages like the stock of Indian Bank, which is available at a very low p/e multiple and also at a discount.

Current price to earnings 10-year average p/e Discount
Indian Bank 14.1 37.5 -62

(Courtesy: Bulls & Bears India Valuation Handbook, Motilal Oswal Financial Services )

“PSU Banks are trading at a P/B of 1.1 times, near their historical average of 1 times. Overall, most public sector banks are trading at reasonable valuations, with an improving earnings outlook,” Bulls & Bears India Valuation Handbook, Motilal Oswal Financial Services says.

Disclaimer

Disclaimer

Investing in stocks poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Investors should take precaution because the markets are near record highs.



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Insurtech RenewBuy plans overseas expansion

Banking & Finance

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RenewBuy, an InsurTech, plans to enter the Middle East and South-East Asian markets as part of its international expansion, Indraneel Chatterjee, Co-Founder, has said.

“We should by end December this year enter into Middle East ( either Dubai or Abu Dhabi will be first port of call) and some of the South East Asian markets six months thereafter”, Chatterjee told BusinessLine.

RenewBuy, which has now raised $ 10 million from Evolvence Capital in addition to the recent raise of $ 45 million capital, led by Apis Partners, has currently closed its Series C round at $55 million.

“With the common technology layer that we have, we can start touching base different markets at the same point in time. Essentially we are modifying our tech stack to be used in countries that are similar in nature i.e where customer choice is driven by the advisors available in these countries. That’s why we are choosing Middle East markets and South East Asian countries like Malaysia, Thailand and Vietnam. We will power them with same RenewBuy Technology layer”, he said.

Technology implementation and distribution expansion are two different levers of growth for RenewBuy. “While we are pressing the distribution layer for India where technology is in place, we are investing in technology for our overseas expansion. We have identified an opportunity of RenewBuy becoming a worldwide organisation and want to work towards that”, he said.

Balachander Sekhar, CEO RenewBuy said, “With this fund raise, we will scale up our technology infrastructure as well as explore international markets, which have similar insurance need gaps like India.”

Haitong Securities was the investment banker for the transaction with Evolvence.

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