Tag: hdfc bank

PSBs are on an upswing, but have they really buried the past?, BFSI News, ET BFSI

Banking & Finance

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The stock market has turned bullish on public sector banks amid growing expectations that their asset quality woes have hit the trough.

The State Bank of India results announcing a reduction in bad loan pile has fuelled the euphoria. But experts say public sector banks are still wobbly despite the outlook as Covid stress has brought renewed challenges for them.

What’s up?

Traders have mounted derivative bets on state-owned banks encouraged by the recent run-up in share prices. The outstanding positions in futures contracts of public sector lenders such as SBI,

Punjab National Bank and Bank of Baroda have shot up, especially after strong March quarter results from SBI last week.

The open interest in Bank of Baroda futures by number of shares is at a lifetime high and in SBI it is at the highest since September 2020. SBI shares touched a lifetime high of Rs 427.70 on February 18 this year are near that mark.

Nifty PSU Bank index gained 2% to close at 2,398.15 on Monday, with Punjab National Bank, Central Bank and Union Bank and SBI gaining 2-5%.

In the ongoing May series, SBI’s shares are up 14.6% while Bank of Baroda’s shares have risen nearly 22%. Punjab National Bank’s shares are up 13.5% during the same period.

The red flags

While the banks have cleaned up their books, mostly on the basis of write-offs, and posting robust numbers they may be staring at a renewed stress.

Banks are facing greater stress in smaller towns, more so the public sector banks as they have a bigger presence there.

The special mention accounts of public sector lenders are increasing, showing a rise in new stress as Covid buffets smaller businesses.

SBI’s SMA accounts where repayments are overdue more than a month totalled Rs 11,500 crore, while Bank of Baroda and Punjab National Bank had also reported build-up of these accounts for the December quarter during in QIP documents.

Credit growth has been falling for the last few years and totalled 5.58% for FY21 as against 6.02% for FY20. This credit growth is mostly cornered by the private banks, with PSBs seeing a sharper fall in credit growth

While PSU banks have reduced their bad loan pile mostly through write-offs, the recovery from such accounts is abysmal at less than 30%. In FY20, about 25% bad loans were written off. SBI wrote off Rs 32,000 crore in FY21, which is 23% of its total bad loans.

Comparison with private lenders

PSU bank shares have mostly been underperformers vis-à-vis their private-sector peers in the past decade because of high nonperforming loans (NPLs) and loss of market share. The superior performance by private sector banks pushed their valuations to record levels.

The Nifty PSU Bank index is down 11.6% in the past three years, while the Nifty Private Bank Index is up 23%. The Nifty index is up 43.1% in the same period.

PSU banks including Bank of India, Punjab National Bank, Bank of Baroda and UCO Bank among others are trading at a Price to Book (P/B) of around 0.55-0.7 times. SBI is trading at P/B ratio of 1.6 times.

In comparison, private lender HDFC Bank is trading at 4.1 times and Kotak Mahindra Bank at 5.5 times.



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HDFC Bank sees stress emanating from loans restructured during Covid 1.0, BFSI News, ET BFSI

Banking & Finance

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HDFC Bank has warned of a rise in loan delinquencies as business and collection efficiencies have been hit by the Covid wave.

The second wave has accentuated problems for the people hit by the first wave and there will be stress emanating from borrowers who took the moratorium or restructuring, its chief executive Sashidhar Jagdishan said in an investor call.

“For the first time in as many years, we don’t have visibility on what is going to happen and, hence, near-term expectations are tepid,”Jagdishan said.

“There will be incremental slippages if this continues for a while longer.”The pace of vaccination is crucial for both clarity and visibility on likely delinquencies. he said.

He stressed that vaccinating more citizens, within the shortest period of time, was the only way of returning to normalcy.

“Unfortunately, the availability of vaccines is still a blind spot. A lot of people are struggling to get vaccinated, but as soon as this is smoothened, positivity should return to the future outlook,” he said. The bank has also asked its collection agents and door-to-door staff to function digitally.

Collections hit

“The impact of Covid 2.0 is much more than what we saw in the first wave, and the health of our staff is paramount,” he said. “So long as they are able to engage with customers digitally and secure business digitally, including collections, we will be alright.

Because we have also directed our collection agents not to step out, among the stressed borrowers we expect to see a higher amount of delinquency but these accounts should get resolved in the coming quarters.”

“As things stood in March, we would have had a very buoyant FY22, but as things stand now, our performance is on a best-effort basis,” he said. “But the platform is so good that we will be in a position to bounce back when things return to normalcy.”

Tech issues

Jagdishan also said the bank management was hard at work to solve the tech issues plaguing the lender in recent years. The bank faced three major digital outages in the last three years, prompting the central bank to direct curbs, including a standstill on launching new digital initiatives and onboarding credit card customers.

“A fair amount of work has happened though we still need some time before we can control the issues on resilience,” Jagdishan said. “We have done a fair amount of work on our IT systems, security, infrastructure, and our recovery timeline is something we are working on.

The strictures imposed by the RBI have given us a window to work faster. We are impacted, it is a blot on the bank that we are unable to source cards but I take this positively and build our technology that is better than that of anyone else in the system.”

HDFC Bank first saw a spurt in cheque bounce cases in April, coinciding with the second lethal Covid wave in the country.

Check bounce rates for HDFC Bank were improving up to March 2021. However, bounce rates increased in April, returning to January 2021 levels. Maharashtra, Madhya Pradesh, Punjab, and Telangana were seeing higher check bounce rates.



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Small finance banks less prepared than private banks, BFSI News, ET BFSI

Banking & Finance

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Small finance banks (SFBs), which depended heavily on loan moratorium last year, are likely to be hit by delinquencies as Covid crimps the incomes of their mainstay borrowers.

However, they are inadequately prepared to face the barrage of asset quality issues that may hit them. In contrast, the top private sector banks are adequately prepared to face the crisis.

The provision coverage ratio, or amount set aside for bad loans, is less than 60% of total bad loans. for three listed banks—Equitas Small Finance Bank Ltd, Ujjivan Small Finance Bank Ltd and AU Small Finance Bank.

AU Small Finance Bank’s PCR fell to 50% in Q4 from 53% earlier, while Equitas Small Finance Bank, the most conservative among the SFBs, saw a 25% decline in the overall provision, compared with last year. Ut made additional provision to Rs 153 crore at the end of the fourth quarter.

Ujjivan Small Finance Bank’s PCR fell to 60% in the fourth quarter, from 80% in the year-ago period. The bank made a provision of Rs 170 crore as of March-end.

Private banks’ PCR

For HDFC Bank total provisions (comprising specific, floating, contingent and general provisions) were 153% of the gross non-performing loans as on 31 March 2021.

ICICI Bank had substantially increased its provision coverage ratio (PCR) to 86 per cent with pro forma PCR of 78 per cent, the highest in the industry.

Axis Bank’s provision coverage ratio, including write-offs, stood at 88% in the fourth quarter.

SLTRO boost

While the small finance banks did not get moratorium relief, the Reserve Bank of India (RBI) has announced a special long-term repo operation (SLTRO) for small finance banks. The central bank conducted the special operation of Rs 10,000 crore at repo rate, Das said.

“Small finance banks (SFBs) have been playing a prominent role by acting as a conduit for the last-mile supply of credit to individuals and small businesses,” Das said earlier this month announcing the relief measures.

“To provide further support to small business units, micro and small industries, and other unorganised sector entities adversely affected during the current wave of the pandemic, it has been decided to conduct special three-year long-term repo operations of Rs 10,000 crore at repo rate for the SFBs, to be deployed for fresh lending of up to Rs 10 lakh per borrower,” Das said, adding that the facility will remain open till October 31, 2021.

Priority loans

The RBI also has decided to allow the classification of priority sector lending for loans given by small finance banks (SFB) to micro-finance institutions (MFI) for on-lending to individuals.

The decision has been taken to address the liquidity issues of MFIs amid the severe Covid crisis.

RBI Governor Shaktikanta Das said: “In view of the fresh challenges brought on by the pandemic and to address the emergent liquidity position of smaller MFIs, SFBs are now being permitted to reckon fresh lending to smaller MFIs (with asset size of up to Rs 500 crore) for on-lending to individual borrowers as priority sector lending.” This facility will be available up to March 31, 2022.



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HDFC Bank’s credit card base shrinks by 3L during Dec-Mar

Personal Finance

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According to an HDFC Bank official who spoke on condition of anonymity, the lender is gearing up to return to the market once the regulatory penalty is reversed.

The Reserve Bank of India’s (RBI) embargo on sourcing of new credit card customers by HDFC Bank may have started to affect the lender’s card base. According to data released by the central bank, the number of credit cards outstanding at HDFC Bank fell by about 3.23 lakh between December 2020 and March 2021 to 1.5 crore.

The lender has long been the market leader in terms of cards in circulation as also spends, but the RBI’s decision to penalise the lender for lapses in its digital services may be slowing down the growth. It was not immediately clear whether the card base shrank due to a churn in cards or a conscious weeding out of inactive cards by the bank. Queries sent to the bank remained unanswered till the time of going to press.

ICICI Bank may turn out to be the biggest beneficiary of HDFC Bank’s absence from new issuances. In March, it continued to lead in fresh issuances, accounting for nearly 52% of new cards, showed data released by the RBI. The total number of new credit cards issued during the month stood at 4.02 lakh.

According to an HDFC Bank official who spoke on condition of anonymity, the lender is gearing up to return to the market once the regulatory penalty is reversed. “We are using this time to build up our liability base and keep our system ready to hit the market once the embargo is lifted,” he said. Historically, the bank has issued a majority of its credit cards to its own deposit holders.

During a call with analysts after HDFC Bank’s Q4FY21 results, the management said it had opened about 2 million new liability relationships in the March quarter and about 7 million liability during the full year. It has more than 2.5 million corporate salary customers during the year.

Chief financial officer Srinivasan Vaidyanathan said the bank is continuously investing in increasing spends, depth and width, revolve behaviours, product upgrades, line enhancements and loans on cards. “The impact of the non-issuance of cards is on new employees in corporates, new corporates on-boarding, etc. This loss of new customers can normally be made up within a few quarters of stoppage being lifted, since the bank continues to source liability customers who will be pre-approved,” he said, adding, “About three-fourths of our sourcing comes from existing customers of the bank.” In the meantime, the lender is focused on engaging with existing card customers who are dormant or inactive in order to “resuscitate” them.

So far, analysts have been hopeful about the bank’s ability to bounce back in its traditional area of strength. After the Q4 results, Kotak Institutional Equities said in a note, “Overall, we have not seen any business impact as the liability franchise is holding up well. The bank is working with its existing credit card base to generate business currently, but this issue would have an impact in the medium term if not resolved soon.”

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Auto-debit EMI failures set to rise in May as Covid hits incomes, BFSI News, ET BFSI

Banking & Finance

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The financial distress due to the Covid pandemic is leading to borrowers defaulting on monthly retail payments.

The rise in cheque bounce cases, which was first reported by HDFC Bank during its fourth-quarter results, is now seen at other payment avenues.

More borrowers missed equated monthly instalments (EMIs) in April, according to the data from the National Payments Corp. of India (NPCI).

In April, about 34.1% of auto-debit transactions on the National Automated Clearing House (NACH) failed, mainly due to insufficient funds.

The percentage of failure was 32.8% in March, when the second wave of Covid hit.

While in the value terms, 27.9% of transactions were unsuccessful in April against 27.5% in the previous month, the rise in the number of failures has alarmed experts, who see more drop in retail payments this month due to the spread of lockdowns to many other states.

This data is only for inter-bank mandates, which means a transaction between a bank and a non-bank lender.

HDFC Bank

HDFC Bank, the top private sector bank in India, first saw a spurt in cheque bounce cases in April, coinciding with the second lethal Covid wave in the country.

Check bounce rates for HDFC Bank were improving up to March 2021. However, bounce rates increased in April, returning to January 2021 levels. Maharashtra, Madhya Pradesh, Punjab, and Telangana were seeing higher check bounce rates.

With the resurgence of Covid cases, the bank continues to make additional contingent provisions to further strengthen the balance sheet. Although, overall asset quality remains stable, with total restructuring at 0.6% of loans and net NPA at 0.4%.

Moratorium demand rises

While the RBI has announced loan recast measures, demand is rising for loan moratorium due to renewed financial stress.

Transporters’ apex body AIMTC has requested the government for a blanket loan moratorium for the sector till August 31, 2021, in the prevailing scenario to help in maintaining business continuity.

In a statement, the All India Motor Transport Congress (AIMTC) pointed out that around 70 per cent of the country is under lockdown and more than 85 per cent of the transporters are small operators having one to five vehicles (both cargo and passenger segment).

“We have requested the government for blanket loan moratorium in the prevailing scenario to help in maintaining business continuity and tackling stressed sectors like the transport sector and help in the survival of crores of these hapless Indian citizens associated with the road transport sector,” it said.



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HDFC Bank retail loan recasts highest among private banks last year, BFSI News, ET BFSI

Banking & Finance

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The Reserve Bank of India‘s restructuring of loans announcement seems to have come at the right time for small borrowers, going by such recasts last year.

Retail or small borrowers have benefited the most from the restructuring scheme announced by the RBI last year as part of its pandemic relief measures, according to the results put out banks so far.

The total restructured accounts for HDFC Bank were 3.36 lakh accounts, involving loans of Rs 6,508.37 crore, of which 2.87 lakh accounts were for retail loans amounting to Rs 5,456 crore.

About Rs 82.38 crore retail loans of Kotak Mahindra Bank were restructured while the total recast loans were worth Rs 121.5 crore.

The restructured loans of Axis Bank were Rs 844.6 crore, of which retail loans accounted for Rs 503.71 crore.

ICICI Bank saw loan recasts for 1,624 accounts, of which 1,586 were retail accounts and the rest corporate. but the corporate loans recasts were higher at Rs 1,323.28 crore against Rs 643.19 crore for retail loans. Yes Bank saw loan recasts of Rs 1,112.21 crore where corporate loans accounted for Rs 940.11 crore spread 352 accounts.

Restructuring 2.0

Earlier this month, Reserve Bank announced a slew of measures including loan restructuring for individual and small businesses hit hard by the fresh Covid wave.

Borrowers that are individuals and micro, small and medium enterprises (MSMEs) having aggregate exposure of up to Rs 25 crore would be considered for the new scheme.

This would be for those who have not availed restructuring under any of the earlier frameworks, including the Resolution Framework 1.0 of RBI dated August 6, 2020, and who are classified as standard as on March 31, 2021, shall be eligible for the Resolution Framework 2.0, he said.

Under the proposed framework, the bank may be invoked up to September 30, and shall have to be implemented within 90 days after the invocation, he added.

Frame policies

The RBI has asked lenders to frame Board approved policies within a month to implement viable resolution plans for stressed advances of individuals and small businesses under the “Resolution Framework – 2.0” relating to Covid related stress. RBI also announced rationalisation of certain components of the extent know-your-customer (KYC) norms for enhancing customer convenience.

These include extending the scope to video KYC known as video-based customer identification process.

Further, keeping in view the Covid related restrictions in various parts of the country, RBI regulated entities have been asked that for the customer accounts where periodic KYC updating is new or pending, “no punitive restriction on the operation of customer accounts” will be imposed till December 31, 2021, unless warranted, due to any other reason.



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Bandhan, Yes Bank shine as FPIs lap up stakes in private lenders, BFSI News, ET BFSI

Banking & Finance

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Foreign portfolio investors have tanked up on stakes in Bandhan Bank and YES Bank as they invested heavily in Indian private sectors lenders but eschewed the public sector ones.

FPI holdings in Bandhan grew over 2.5 times to 34.91 per cent in March 2021 from 13.05 per cent in March 2020.

Bandhan Bank’s promoter company Bandhan Financial Holdings had to dilute a 21% stake to be compliant with RBI’s licensing condition. The promoters bought down their stake from 60.95 per cent in March 2020 to 40 per cent, which was mostly bought by the FPIs.

PSU and other lenders, led by State Bank of India, had bailed out YES Bank by buying its stake in early 2020. Many banks involved in the rescue act offloaded their part stake in Yes Bank via a follow-on public offer, which was bought by FPIs.

Yes Bank

The second-highest increase of FPI stake was in Yes Bank at 13.77 per cent in March 2021 (1.86 per cent).

According to experts, Yes Bank’s solution of legacy issues, known stress levels and non-performing assets, strong management give confidence to investors, who are expecting the lender to turn around in the medium term.

Also, equity mutual funds that have huge holdings in these banks offloaded their stakes due to redemption pressure, which were bought by FPIs.

Strong growth prospects, lower-than-expected NPAs, return ratios, operational efficiencies, decent earnings are attracting FPIs to private banks.

Among other private banks, FPIs increased stake in Axis Bank (5.94%), ICICI Bank (4.08%), Kotak Mahindra Bank (5.06%), RBL Bank (6.32 per cent), HDFC Bank (3.11 per cent), while they have cut stake in Federal Bank (-8.0 per cent), IndusIndBank (-2.67 per cent) and IDFC First Bank (-1.68 per cent).

PSU banks

However, FPI stakes in public sector banks were static during the last fiscal. The FPI stake in Bank of Baroda and Canara Bank rose 2.32 per cent and 1.28 per cent respectively, while it went up just 0.35% in State Bank of India, the country’s largest lender.

They have cut stake in Indian Overseas Bank (-0.11 per cent), Union Bank of India(-0.63 per cent) and Indian Bank (-1.33 per cent) while increased it by (0.76 per cent) in Punjab National Bank,

Experts say PSBs were hamstrung by wobbly balance sheets and inadequate capital. Also, the likely stress due to the pandemic is keeping foreign investor away.



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IBA fears precedent, wants govt to pay ‘interest on interest’, BFSI News, ET BFSI

Banking & Finance

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The Indian Banks’ Association (IBA) has sent a communication to the Finance Ministry to pay the compound interest charged to borrowers with loans above Rs 2 crore during the moratorium period of March 1 to August 31, 2020.

Though most private banks have provided for the compound interest waiver, bankers are of the view such a move will set a precedent and want the government to foot the bill. They are expecting a reversal benefit on the interest on interest payment, according to a report.

The Supreme Court order

The Supreme Court in its order last month had directed the government and the RBI to waive penal interest charges on all loans, while rejecting the demand of borrowers to extend the repayment moratorium beyond August 31 and for a complete interest waiver. The loan moratorium scheme was aimed at giving temporary relief to borrowers.

In November last, the government decided to waive interest-on-interest for borrowers below loan exposure of Rs 2 crore. It paid nearly Rs 6,000 crore to lenders to compensate them for the income loss.

Bank provisions

After waiting for the government to burden the compound interest on loan waivers, top banks have provided for payment in the fourth-quarter results.

HDFC Bank has provided Rs 500 crore for interest on interest while ICICI Bank said it has kept Rs 175 crore aside for it, according to the Q4 results announced by these banks. Axis Bank has provided Rs 160 crore while Mahindra Finance has made a provision of Rs 32 crore.

How much does it cost?

Waiving compound interest on loans above Rs 2 crore could cost nearly Rs 4,000 crore to public sector banks, Rs 2,500 crore to private banks and another Rs 1,000 crore to non-bank lenders.

While ICICI Securities had put the total compound interest burden on loans above Rs 2 crore at Rs 11,700 crore, other analysts have put it between Rs 7,000 crore and Rs 10,000 crore. As per rating firm ICRA, compound interest for six months of moratorium across all lenders is estimated at Rs 13,500-14,000 crore.

The Indian Bank Association has recently finalised a methodology for the calculation of the interest on interest component.

Under the norms, borrower accounts which were standard as on February 29, 2020, including SMA­0, SMA­1 and SMA­2 will be eligible for the refund. All loans, working capital, trade products, outstanding during the moratorium period shall be considered for the compound interest waiver.

The government stand

The government had reimbursed banks for forgoing compound interest, or interest on interest, on loans up to Rs 2 crore outstanding during March-August last year, when borrowers had the option to seek a moratorium on repayments.

Lenders have been charging compound interest on larger amounts, but the Supreme Court order means they must now refund it to borrowers. Banks were hoping that the government will take on the burden by enhancing the scope of the ex-gratia scheme to cover the additional refund after the apex court order.



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Merchants payments is next battleground for SBI, HDFC Bank and ICICI Bank, BFSI News, ET BFSI

Banking & Finance

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State Bank of India, HDFC Bank and ICICI Bank have lined up a slew of plans to capture the payments and settlement market as they ramp up their digitisation initiatives.

ICICI Bank, India’s second-largest private sector lender by assets is eyeing a large share of the potential Rs 31 lakh crore of payments and settlement market to more than 2 crores small, big, offline and online businesses by fiscal 2022 by offering these wholesalers and retailers payment systems bundled with cash management and credit facilities.

The bank is targeting income from fee, credit and savings due to use of technology by offering these services to these large and small establishments spread across the country. As per RBI data the market for merchant services is Rs 2.32 lakh crore or about Rs 24 lakh to Rs 25 lakh crore in fiscal 2020 and is expected to increase 45% to Rs 31 lakh crore by fiscal 2022.

The merchant stack will provide “seamless banking services” to over 2 crore retail merchants in the country.

The bank also expects to extend other services like short term loans of tenure between six months to 1 year.

HDFC Bank

HDFC Bank, the country’s largest private sector lender, has set an ambitious target to expand its merchant base by ten-fold

in the next three years, eyeing a sizable share of India’s rapidly growing digital payments market.

The lender is planning to reach out to more than 20 million small and medium merchants and also professional services like doctors,

pharmacies, salons and laundry services across metro, semi urban and rural India in the next 3 years. HDFC Bank has about two

million merchants on its network as of FY20. The lender on Wednesday launched a new banking and payment solution for its merchant called SmartHub Merchant Solution 3.0. This will allow merchants and self-employed professionals to instantly open a current account and start accepting payments both through physical and digital channels.

It has tied up with global card network Visa to enable some of the payment solutions. The features would also be digitizing Khata, enabling collection reminders, inventory management, billing software and lending to merchants’ basis their banking history.

HDFC Bank processes about 48% of the overall card transactions at the merchant level in terms of volumes and about a fourth of the Unified Payments Interface (UPI) volumes.

State Bank of India

SBI Payments, a subsidiary of India’s largest lender State Bank of India, will launch YONO Merchant App to provide low-cost digital payments infrastructure to merchants.

YONO Merchant App will expand digitization of merchant payments in the country, SBI said in a release.

Aiming to enable millions of merchants through mobile-led technology to accept digital payments, SBI plan to deploy low-cost acceptance infrastructure across India over the next two years targeting 20 million potential merchants across India in retail and enterprise segment. This will help boost digital payments acceptance infrastructure in tier 3, 4 as well as north eastern cities.

YONO SBI Merchant will act as a soft PoS (point of sale) solution for which it has partnered with global payments technology major Visa to enable Tap to Phone feature. The partnerships aim to give the necessary boost to scale up acceptance infrastructure across the country,

Bank launched YONO Platform three years ago, YONO, has 35.8 million registered users.

In the next 2-3 years, SBI is aiming to digitize millions of merchants by upgrading their mobile phones into a PoS device accepting all form factors, accessing Value Added Services such as loyalty, GST invoicing, inventory management, among others and connecting into an interface to avail other banking products at a click of a button. The bank is aiming to grow our merchant touch points multi-fold crossing 5-10 million within 2-3 years.



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HDFC Bank rejigs management for next growth phase, BFSI News, ET BFSI

Banking & Finance

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HDFC Bank has unveiled organizational changes under its Project Future – Ready to power its next phase of growth.

The bank has reorganized itself into three key pillars – Business Verticals, Delivery Channels and Technology/Digital to build its execution muscle. The business vertical and delivery channels will enable it to capitalise on the opportunities across different segments.

The bank will double down its efforts in business verticals like Corporate banking, retail banking, private banking, government and institutional banking, retail assets and payments.

It is increasing its focus on Commercial Banking (MSME vertical), the backbone of Indian economy enabling the bank to bring its product and digital might to the entire Commercial Banking (MSME community) in a much more holistic and focused manner across Bharat & India.

The strategy is split into four broad delivery channels: Branch, Tele-services, sales channels with business verticals and digital marketing. All the businesses and delivery channels will be backed by Technology & Digital as the core backbone. The outlined its Technology transformation agenda and it will synergise and integrate its technology / Digital functions and invest aggressively to both Run and Build the Bank.

Sashi Jagdishan, MD, HDFC Bank said, “We are creating engines of growth with top tier talent backed by technology and digital transformation to capitalise on opportunities that will accrue in the coming time. They are in our mind Future – Ready teams. I am sure this structure will create the necessary strategic and execution agility that we need to serve our customers across India & Bharat, Retail, Commercial (MSME) and Corporate segments.”

Kaizad Bharucha, Executive Director, will continue to drive the Wholesale Bank including Corporate Banking Group, Capital and Commodities Markets group and Financial Institutions.

Rahul Shyam Shukla, Group Head, will now be responsible to drive the Commercial Banking (MSME) and rural vertical, a big future growth engine for both India and the Bank.

Smita Bhagat, Group Head – Government and Institutional Business (GIB) and Start-ups will continue to drive the Govt / Institutional Banking. She will also drive the expansion of our rural presence leveraging our partnership with CSC and also the start-up sector.

Arvind Kapil, Group Head – Retail Assets and SLI, will continue to drive the Retail Assets Portfolio. The growth potential, we believe, is immense in retail assets in the context of credit under penetration in the country.

Rakesh Singh, Group Head – Investment Banking and Private Banking will also be responsible for Marketing, Retail Liability Products and Managed Programmes.

Ravi Santhanam, CMO, will now be also responsible for driving Digital Marketing as a stand-alone delivery channel. He will also be additionally responsible for the Retail Liability Products and Managed Programmes.

Sampath Kumar, Group Head – NRI will now be in charge of all tele-service relationships, including VRM delivery channel of the Bank. The mandate is to combine the power of human touch and digital to deliver a differentiated customer experience.

Arvind Vohra, Group Head – Retail Branch Banking, Retail Trade & Forex will continue to drive the efforts to expand the Bank’s reach across India through branch banking.

Parag Rao, Group Head – Payments Business, will now drive the technology transformation and digital agenda. He will continue to be responsible for the Payments vertical. Mr Ramesh Lakshminarayanan, Chief Information Officer and Mr Anjani Rathor, Chief Digital Officer will report to Parag.

Ashish Parthasarathy- Group Head, Treasury and GIB would also provide the leadership for the tele-service / sales / relationship channel.

Bhavesh Zaveri, Group Head – Operations, will continue to handle the entire operations of the Bank. He will also be additionally responsible for the entire ATM channel operations across the country.

The bank said the role of credit, risk, control and enabling functions continue to be critical as it scales up further in size and reach to realise its vision of Project Future Ready.



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