Tag: SME

CSB Bank to strengthen branch network to expand SME & LAP business, BFSI News, ET BFSI

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CSB Bank, having a strong presence in Kerala, Tamil Nadu & Karnataka is looking to expand its presence in the areas which have a significant opportunity to tap SME and LAP business.

Shyam Mani, Head – NRI & SME, CSB Bank in a conversation with ETBFSI talks about how they’ve drawn their strategy to expand in the key SME hubs and extend credit and strengthen LAP portfolio.

Shyam Mani, Head – SME, NRI Banking, CSB Bank

As of June 30, 2021 the bank’s gross advances increased 23.71% to Rs 14,146 crore as against Rs 11,434.65 crore as of 30 June, 2020. Further its advances against Gold and Gold Jewellery accounts for 39.71% of the gross advances totaling to Rs 5,617.68 crore (increased by 46.16% on a Y-o-Y basis) as of June 30, 2021.

Hub & Spoke Model for SMEs

The bank is tapping SMEs with a turnover of Rs 250 crore and below excluding export turnover and up to ticket size of Rs 50 crore maximum. It has set up exclusive teams primarily to focus on leveraging existing branch distribution channels.

Mani said, “We have created a hub and spoke model and identified 42 key hub branches (or SME branches) and linked to 220 respective spoke branches, and the strategy is centered around the businesses in these specific catchments. Currently, we might not have large books in these areas but do have our presence like for e.g. Peenya, Bommanahalli in Bangalore and other SME markets like Delhi, Mumbai, etc.”

The demography in these branches are SME or business-led and where the bank’s SME assets will reside. Post identifying these areas they moved their key resources with teams working on relationship management and acquiring business and other team taking care of the portfolio. These branches are the bank’s primary funnel for our SME business.

He adds, “Beyond branch networks we also work with state bodies and industry associations. In each of these hubs, we have drawn connections to funnel for business. So the idea has been to identify and set-up distribution followed by prioritising our product offerings which are segment and ticket-size specific.”

The bank is creating scorecards by mapping segment, ticket size, and different parameters along with bureau checks to make quicker decisions. It also intends to simplify the process through technology and go maximum paperless as it progresses.

“Once all processes are in place from distribution to product offering to simple processes at par with peer banks, we are looking to complete the entire cycle of requirement of SME customers and build a good portfolio,” he added.

Mani has also observed that a lot of businesses are coming to India from different countries and is seeing an uptake in export-oriented businesses like auto ancillaries, engineering goods, etc. These companies are running with double shifts and are the ones who have built capacity and have large export orders.

Mani said, “We are focusing on recession-proof sectors and are particular about the sector we want to capture. Food-processing, healthcare, pharmaceuticals, engineering works, and specific markets which have export orders are some of the key sectors we are looking at. We don’t restrict our lending to top branches only, if there’s a requirement and an opportunity for a specific economy, we are able to take on their requirements as a lot of processes are centralised.”

Expanding LAP Business

CSB Bank is looking to strengthen their LAP offering by focusing on Top 10 cities to start with and do LAP business even within their SME presence.

Mani said, “Bombay, Delhi, Pune, Ahmedabad, Bangalore, Hyderabad, Chennai, Kochi, and Coimbatore are key markets for our LAP business. Within these markets, we have picked up top 60 branches having exclusive teams focusing on LAP disbursements on retail and large ticket size in parallel with SME business.”

He adds, “It’s an opportunity for us as we find a lot of NBFC business is moving into banks in terms of balance transfer because of two key reasons, one is pricing, and second, customer convenience. We are particular in handpicking cities because while our predominant distribution is in Kerala and Tamilnadu, nationally LAP is a potential business irrespective of your book size and distribution.”

The bank takes a combination of internal rating & external rating to take the credit calls.

He explains that they have to be careful of real estate prices and the stability of the market. “We are conscious about it and keep tracking the market from a risk perspective and have tied up with industry experts to gather inputs on market trends and take calls on industry and location-specific details,” he concluded.



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UK’s fintech firm Tide to invest over ₹1,000 crore in India

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Fintech firm, Tide, the UK’s leading SME-focused neobank, has forayed into the India market, its first international market. As part of its India chapter, Tide announced that it will create over 1,000 jobs and invest more than ₹1,000 crore in India.

These jobs will be across a wide variety of roles, including product development, software development, marketing, risk & compliance and member support. Hiring has already begun and the company will be hiring both freshers and laterals across levels.

Tide already has over 200 highly skilled employees in India, with most based in its Hyderabad technology centre, which was set up in early 2020. Its business headquarters are in Gurugram. Tide is building a robust team in India, creating a pool of talented and experienced colleagues that will help build the business, scale operations and further Tide’s desire to unleash the true potential of Indian SMEs by helping them save time and money in running their businesses.

Also read:How China humbled Britain’s mighty HSBC Bank

“We, at Tide, are committed to serve India with our innovative business banking solutions and support the country’s post-pandemic economic recovery. Through this, Tide looks to contribute to both the countries’ vision in developing a roadmap to a free trade agreement with a target of 100 billion pounds by 2030,” said Gurjodhpal Singh, CEO, Tide India.

Besides providing business accounts and related banking services, Tide will also offer a comprehensive set of administrative solutions including invoicing, digital ledger, taxation, payroll etc. to help SMEs run their businesses easily and efficiently. Besides supporting the organised SME sector, Tide will also focus on serving the unregistered and unorganised sector, helping small businesses digitise and bringing them into the mainstream.

Also read:Investment tech start-ups see surge in funding in 2021

As a first step towards this mission, Tide recently announced its collaboration with its first banking partner, RBL Bank, one of India’s fastest growing private sector banks. RBL Bank will provide the bank account infrastructure for Tide’s India platform where members (SMEs) will have an option to open current and savings accounts.

Congratulating Tide on the achievement, UK Minister for Investment, Gerry Grimstone said, “I am pleased that Tide’s innovative business financial platform, part of the UK’s world leading fintech ecosystem, is embracing the opportunities in India’s dynamic and growing SME market. The UK and India have ambitious plans to deepen our trade and investment partnership and bring benefits to both economies, and this is a great example of what we can do together.”

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S&P revises ICICI Bank outlook to stable from negative, BFSI News, ET BFSI

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NEW DELHI: S&P Global Ratings on Friday said it has revised the rating outlook on ICICI Bank Ltd to stable from negative on grounds that the lender will benefit from the sale of stake in subsidiaries.

The rating agency affirmed its ‘BBB-‘ long-term and ‘A-3’ short-term issuer credit ratings on ICICI Bank.

“We revised the rating outlook to reflect our view that ICICI Bank will maintain its strong capital position over the next 24 months. The bank will benefit from the sale of a stake in subsidiaries and gradual normalization of earnings, which should reduce risks associated with its capital position,” it said.

In a statement, S&P forecast that ICICI Bank will maintain a risk-adjusted capital (RAC) ratio of more than 10 per cent over the next 24 months.

“Our expectation factors in 13-14 per cent credit growth for the bank, an improvement in earnings, and sale of stake in insurance subsidiaries over the period,” it said.

ICICI Bank’s stressed loans (non-performing loans and restructured loans) are likely to remain high when compared to that of international peers.

The bank’s stressed loans are expected to peak at 6 per cent of total loans in the fiscal year ending March 2022, lower than the estimate of 11-12 per cent for the Indian banking industry.

“The bank’s new non-performing loans (NPLs) are likely to stay elevated in fiscal 2022 owing to the impact of the second wave of COVID-19 infections. In our view, localized lockdowns will hit small and midsize enterprise (SME) borrowers the most,” it said.

Retail loans, especially unsecured personal loans and credit card debt, are also vulnerable.

For ICICI Bank, SME loans (accounting for 4.2 per cent of total loans), personal loans (6.7 per cent), credit cards (2.4 per cent) and rural loans (10 per cent) could contribute to the increase in NPLs.

ICICI Bank has made COVID-19 related provisions to the tune of 1 per cent of advances.

This, S&P said, should help smoothen the hit from pandemic-related losses.

“The bank’s better customer profile and underwriting relative to the Indian banking system should limit losses,” it added.

ICICI Bank’s lower credit costs than in the past should enhance its profitability, it said estimated core earnings at 1.3-1.6 per cent of assets over the next two years, with further upside possible from the sale of stake in subsidiaries.

“The stable outlook reflects our view that ICICI Bank’s capitalization will remain strong over the next 24 months, aided by better earnings and profit from the sale of a stake in subsidiaries. We factor in a slight deterioration in the bank’s asset quality and performance due to COVID-19,” it said.

In its base case, ICICI Bank will maintain its strong market position, strong capital, better-than-system asset quality, and good funding and liquidity over the next 24 months.

“An upgrade of ICICI Bank is unlikely in the next one to two years because that would require an improvement in the bank’s financial profile as well as the sovereign credit rating on India.

“Our assessment of ICICI Bank’s financial profile may improve if the bank’s asset quality strengthens to levels in line with international peers, and it maintains its capitalization at a strong level,” it said.



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Rakesh Mohan, BFSI News, ET BFSI

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The second wave of COVID-19 may worsen stressed assets in the banking system, adding pressure on the financial stability, said former RBI deputy governor Rakesh Mohan. He said the Indian banking system has been reeling under the pressure of non-performing assets (NPAs) since 2015.

Various resolution measures including Insolvency and Bankruptcy Code were undertaken to bring down NPAs and then COVID-19 hit in 2020 impacting the growth process, he said during a virtual conference organised by India International Centre and Research & Information System for Developing Countries.

Mohan, who served as deputy governor of the Reserve Bank of India (RBI) twice between 2002 and 2009, said “we have more difficult task than other countries because we had a legacy of bad debt before COVID-19”.

As per the Financial Stability Report of December 2020 by RBI, NPA could go up to 13.5 per cent in the later part of this year, he said, adding, “I would imagine that this would be worse because of the second wave…So this is a real challenge for RBI to maintain financial system’s resilience.”

According to a report titled ‘The Response of the Reserve Bank of India to COVID-19: Do Whatever it Takes’ authored by Mohan, despite all the measures implemented to promote the flow of credit to all segments of the market, credit growth has continued to be sluggish except for a significant increase to the SME sector.

“Hence there is a mismatch between the performance of the real sector and financial markets. This could potentially lead to enhanced stresses experienced by both lenders and borrowers, leading to potential financial instability,” the report released earlier this week by the Centre for Social and Economic Progress said.

Thus, he said, financial stability challenges remain for the Indian financial system and its regulator in the months to come.

Mohan’s views come days before RBI’s release of bi-annual Financial Stability Report, which will give investors a clearer picture about the state of India’s banking sector and the outlook.

RBI is slated to come out with the report towards the end of this month.

As per the Financial Stability Report, NPAs of the banking sector were projected to surge to 13.5 per cent of advances by September 2021, from 7.5 per cent in September 2020, under the baseline scenario.

The report had warned that if the macroeconomic environment worsens into a severe stress scenario, the NPA ratio may escalate to 14.8 per cent.

Earlier this year, another former deputy governor H R Khan had observed that non-performing assets (NPAs) or bad loans of public sector banks could cross 18 per cent if there is deterioration in economic activity due to the pandemic.

Mohan further said RBI has been very active before and after COVID-19 and has taken a number of actions to protect financial system from the ravages of the pandemic.

He expressed concern that the number of professionals at RBI in 2020-21 is lower than that in 2007-08.

Compared to any other significant country, he said, the number of professionals at RBI is really small.

There is a need to increase the number of professionals in the central bank in the light of expansion of financial system and transformation of financial space in the last 12-13 years, he observed.



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Travel, tourism, retail may be the next bad loan fronts for Indian banks, BFSI News, ET BFSI

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As banks were clearing off the bad assets in their corporate loan cupboards, they may be staring at another bout of bad loans.

This time the stress is emerging from retail loans, which have been the banks’ mainstay for the last few years as corporate loans declined. The contact intensive travel and aviation sectors are also likely to give pain to banks if the Covid situation worsens.

Loans to travel and hospitality

As of April 23, 2021, banks loans to tourism, exports and restaurants stood at Rs 50,395 crore as against Rs 47,101 crore a year earlier, a rise of 7 per cent. The growth rate was less than half of the 18 per cent jump in the previous 12 months.

The total bank loans to the aviation sector as of April 23, 2021, stood at Rs 26,309 crore, up 8.2% year on year.

Retail loans

There has been a “sharp decline” in collection efficiencies in retail asset pools across asset classes in May due to the second wave of the pandemic, with microlenders witnessing a dip of up to 20 per cent, a report said on Monday.

“ICRA has observed a sharp decline in the collections of its rated securitisation transactions in April 2021 (i.e. May 2021 payouts), following the rise of Covid cases and imposition of lockdowns/movement restrictions which has impacted the operations and collection activities of the NBFCs and HFCs,” the report from domestic rating agency ICRA said.

The microfinance entities have witnessed the highest decline in collection efficiencies, pointing out that repayments of advances and overdue collection were lower by 20 per cent for April when compared with March.

The agency added that collections for SME loan pools and commercial vehicle loan pools also fell significantly from the heights achieved in March 2021.

Housing loans and loans against property have remained the least impacted and most resilient as was seen last fiscal given the association of the borrower with the underlying collateral and the priority given by borrowers to repay such loans, it said.

RBI measures

The Reserve Bank of India (RBI) has created a special liquidity window of Rs 15,000 crore with a tenor of 3 years at the repo rate to provide liquidity support to the contact-intensive sectors hit by Covid-19.

The special liquidity window encourages banks to provide fresh lending support to hotels, restaurants, tourism, aviation ancillary services, and other services including private bus operators, car repair services, rent-a-car service providers, event/conference organisers, spa, clinics, and beauty parlours/saloons.

These sectors have seen the biggest impact due to the second wave as authorities started imposing lockdown measures to curb the spread of the virus



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DBS tops Forbes ‘World’s Best Banks’ list in India, BFSI News, ET BFSI

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DBS has been named by Forbes in their list of World’s Best Banks 2021. DBS was ranked #1 out of 30 domestic and international banks in India for the second consecutive year. This is the third edition of the ‘World’s Best Banks’ list by Forbes, conducted in partnership with market research firm Statista. Over 43,000 banking customers across the globe were surveyed on their current and former banking relationships. The customer survey rated banks on general satisfaction and key attributes like trust, digital services, financial advice, and fees.

“This year’s list includes a record number of award winners, reflecting consumers’ increasing confidence in their banks,” revealed Forbes in its official announcement. Commenting on the recognition, Surojit Shome, Managing Director and CEO, DBS Bank India, said, “We are humbled and proud to be featured on the ‘World’s Best Banks’ list for the second consecutive year. Over the years, we have built a strong customer-centric franchise, and this recognition shines the light on the resilience and a strong sense of purpose demonstrated by our employees to support customers amid the global crisis. We will continue to deepen customer relationships and build journeys that proactively address their needs.”

Felix Kapel, Lead Analyst at Statista for the World’s Best Banks project, said, “DBS India excels in multiple sub-dimensions. The general satisfaction and customer recommendation of DBS is great. These factors have helped DBS retain the No.1 spot in India.”

Recently, DBS Bank India was recognised as ‘India’s Best International Bank 2021’ by Asiamoney. DBS was named ‘Safest Bank in Asia’ for the 12th consecutive year by New York-based trade publication Global Finance in 2020. The bank was also Global Finance’s pick for ‘Best Bank in the World’ in the same year, making it the third consecutive global Best Bank accolade received by DBS. Previously, DBS was named ‘World’s Best Bank’ by leading financial publication Euromoney in 2019. DBS Bank has been present in India for 26 years and has grown consistently by strengthening its small and medium-sized enterprise business and consumer lending operations to build scale and become a full-service bank. Further, it has showcased a long-term commitment to India with the establishment of its local wholly-owned subsidiary, DBS Bank India Limited (DBIL) and the recent acquisition of Lakshmi Vilas Bank.

The amalgamation of Lakshmi Vilas Bank with DBIL in November 2020 bolstered the bank’s physical presence in the country. DBS now has a network of nearly 600 branches across 19 states in India. To view the complete Forbes list, visit https://www.forbes.com/worlds-best-banks/#5c1a16312951 About DBS DBS is a leading financial services group in Asia with a presence in 18 markets. Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Banks of the Year” by The Banker and “Best Bank in the World” by Global Finance.

DBS was also ranked No 1 in India by Forbes in its 2020 list of the World’s Best Banks. DBS Bank has been present in India for 26 years, having opened its first office in Mumbai in 1994. DBS Bank India Limited is the first among the large foreign banks in India to start operating as a wholly-owned, locally incorporated subsidiary of a leading global bank. DBS provides an entire range of banking services for large, medium and small enterprises and individual consumers in India. In 2016, DBS launched India’s first mobile-only bank – digibank, which now has ~1 million savings accounts. In November 2020, Lakshmi Vilas Bank was amalgamated with DBS Bank India Limited.

The bank now has a network of nearly 600 branches across 19 states in India. DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers and positively impacting communities through supporting social enterprises as it banks the Asian way. It has also established an SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia. In 2020, DBS introduced the “Towards Zero Food Waste” initiative as part of a global sustainability practice to encourage a shift in behaviours and mindsets to reduce food waste. With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all our 30,000+ staff representing over 40 nationalities.



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Ujjivan SFB ventures into supply chain finance with Progcap, BFSI News, ET BFSI

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Ujjivan SFB has tied-up with Progcap for end-to-end digitisation of invoice-based financing of MSMEs for their small tenor working capital requirements. This ties-up the bank’s venture into supply chain financing and will fund dealers, sub-dealers against purchases made from recognised brands through short-term overdraft facility.

The bank said, “The entire lending process, right from the lead generation, lead screening, loan sanctioning, document execution and customer on-boarding and repayments has been digitized through Progcap’s data-driven tech platform.”

Rajiv Kumar Pathak, Business Head – Medium and Small Enterprise, Ujjivan Small Finance Bank said, “This is a win–win arrangement for all stake holders in the MSME business ecosystem i.e. bank, fintech partner, buyers and suppliers. The customer gets working capital in the form of supply chain finance against the invoices raised along with freedom to clear dues with regular cash flow. Digital on-boarding gives us an access to larger geography where we don’t have direct reach through USFB branch network.”

Dheemant Thacker, Head – Digital Banking, Ujjivan Small Finance Bank said, “Driving business through fintech partnerships using Ujjivan Small Finance Bank’s full-stack API Banking platform is at the core of our digital strategy. With our first such partnership in the SME space – Progcap, we are able to offer fully digital, innovative lending services to small businesses and partner with them in their growth. In a short period of time, we have been able to offer supply chain financing to a significant number of businesses and will continue to ramp up our efforts to support these businesses as they battle the uncertainties of the current pandemic.”

Pallavi Shrivastava, Co-Founder, Progcap said, “Supporting MSMEs linked with large corporates is core to what we do at Progcap. We are excited to partner with Ujjivan Bank in this journey. Combined with Progcap’s industry first product that uses heavy data driven underwriting and Ujjivan’s digital first approach, we aim to offer this product to a large number of underserved MSMEs. Progcap is working with similar technology driven lending partners in furthering its mission to support millions of small businesses access credit for the first time.”



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CSB Bank posts highest-ever net profit in FY21 at Rs 218 cr; Q4 net at Rs 43 cr, BFSI News, ET BFSI

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New Delhi: Private sector CSB Bank on Saturday posted an all-time high net profit of Rs 218.40 crore for the fiscal ended March 2021. “The bank recorded an all-time high net profit of Rs 218.40 crore in FY21 as against Rs 12.72 crore in FY20, an increase of 1,617 per cent,” CSB Bank said in a regulatory filing.

During the last quarter ended March of FY21, the lender reported a net profit of Rs 42.89 crore against a loss of Rs 59.70 crore in the same quarter of 2019-20, CSB Bank said.

Total income during the reported quarter grew to Rs 609.45 crore as against Rs 475.49 crore in the same period a year ago. Interest income moved up by 28 per cent to Rs 497 crore.

The full-year income too increased to Rs 2,273.11 crore in FY21 from Rs 1,731.50 crore in FY20. Interest income during the year was at Rs 1,872 crore as against Rs 1,510 crore.

Bank’s asset quality improved as the gross non-performing assets (NPAs) fell to 2.68 per cent of the gross advances as of March 31, 2021 as against 3.54 per cent by end of March 2020. In absolute value, the gross NPAs or bad loans amounted to Rs 393.49 crore, compared with Rs 409.43 crore a year ago.

Net NPAs also fell to 1.17 per cent (Rs 168.81 crore) from 1.91 per cent (Rs 216.94 crore).

Provisions for bad loans and contingencies were down in Q4FY21 at Rs 70.95 crore as compared with Rs 84.32 crore parked aside in the year-ago period.

CSB Bank said its advances grew by 27 per cent mainly contributed by gold loan growth of 61 per cent.

Deposits at end of March this year grew to Rs 19,140 crore as against Rs 15,791 crore a year ago, while the advances were up at Rs 14,438 crore as against Rs 11,366 crore.

Total business has grown by Rs 6,421 crore or by 24 per cent year-on-year, it said, adding, thus in the centenary year the bank has grown a fourth of the total business it grew in past 99 years.

The lender said it has a comfortable liquidity position with liquidity coverage ratio of 210.39 per cent which is well above the RBI requirement.

“While the industry grew by approx 12 per cent in deposits and 6 per cent in advances, we could outperform by recording 21 per cent and 27 per cent growth in deposits and advances, respectively. In terms of overall business, bank has grown a fourth…We could also open 101 branches in this 101st year of existence. In terms of profitability, we could break all the past records by crossing the Rs 200 crore mark,” said C V R Rajendran, Managing Director & CEO, CSB Bank.

He said gold loans, two wheeler loans, agri loans, MSME abd SME loans will continue to be the main focus areas of the bank.

While digital will be the main mantra, the bank also plans to add close to 200 branches to its network in FY22 so that there is proper mix of brick and click banking, Rajendran said.

“Though we may have to wait for a month or so to fully understand the impact of second wave of Covid-19, we are optimistic in our outlook to continue the good work in FY22 as well,” he added.



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Bajaj Finance posts a stellar Q4, but Covid shadow looms, BFSI News, ET BFSI

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Bajaj Finance Ltd today posted a 30.2% on-year rise in its net profit for Jan-Mar to Rs 1,161 crore as it inched closer to pre-pandemic levels.

New loans booked during Q4 FY21 fell to 54.7 lakh (5.47 million) as against 60.3 lakh (6.03 million) in the same quarter a year ago, which shows that the consumer lending business is yet to pick up full steam.

Net interest income during the quarter dipped 1 per cent to Rs 4,659 crore from Rs 4,684 crore in Q4 FY20, it said.

Total income fell by 5 per cent to Rs 6,855 crore from Rs 7,231 crore earlier.

“4QFY21 was a healthy quarter for Bajaj Finance. Disbursements have exceeded 90% of YoY levels across most segments. The initial asset quality performance of incremental disbursements is in line with or marginally better than pre-Covid levels. This bodes well for asset quality in the medium term. In the near term, we do not foresee any major asset quality disruption, unless the impact of the second wave is worse than expected,” Motilal Oswal Securities wrote in a note, while upgrading the stock to ‘Buy’.

Assets under management

On a consolidated basis, the company’s assets under management as of March 31, 2021, increased by 4 per cent to Rs 1.52 lakh crore as against Rs 1.47 lakh crore. However, this growth came mainly due to a 19% jump in mortgages of subsidiary Bajaj Housing Finance.

However, the company said that despite the Covid disruptions, it would be able to grow back to pre-pandemic levels.

In the last 7–10 days, the company has continued to originate 50–55% of daily volumes in the B2B business, 80–85% in the B2C and SME businesses, and 40–50% in Mortgages. However, the company has said that barring a national lockdown, three-four large GDP-contributing states going into simultaneous lockdown for three-five weeks and another moratorium on loan repayment, it is confident of delivering its long-term guidance metrics in FY22.

Despite significant disruptions, Bajaj Finance remains open for business across geographies, in line with local administration advisories.

New loan originations, barring auto finance, are back at pre-Covid levels. The wallet loans business (paused) and retail EMI business have moderated and is doing 50K/month instead of a 150K/month run-rate.

Non-performing assets

The gross and net non-performing assets (NPAs) stood at 1.79 per cent and 0.75 per cent respectively by end of March 2021, as against 1.61 per cent and 0.65 per cent earlier.

The company has a provisioning coverage ratio of 58 per cent on stage 3 assets (NPAs) and 181 basis points on stage 1 and 2 assets as of March 31, 2021.

“Loan losses and provisions for FY21 was Rs 5,969 crore as against Rs 3,929 crore in FY20. During the year, the company has done accelerated write-offs of Rs 3,500 crore of principal outstanding on account of Covid-19 related stress and advancement of its write off policy.

“The company holds a management overlay and macro provision of Rs 840 crore as of March 31, 2021,” it added.

Bajaj Finance said its board of directors has recommended a dividend of Rs 10 per equity share for FY21.

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DCB Bank acquires 9% stake in Techfino Capital, BFSI News, ET BFSI

Banking & Finance

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DCB Bank, announced that it has purchased a minority equity stake in Techfino Capital Private Limited worth approximately 9%. (TCPL). Techfino, a non-banking financial company (NBFC) headquartered in Bengaluru offers customised consumer loans in the education and healthcare sectors through its technology platform.

DCB Bank serves diverse business segments comprising retail, micro-SME, SME, mid-Corporate, Agriculture, Commodities, Government, Public Sector, Indian Banks, Co-operative Banks, and Non-Banking Finance Companies (NBFC).

Narendranath Mishra, Head Agri and Inclusive Banking, DCB Bank, said, “DCB Bank and TCPL are thrilled to work together. As a financial solution, micro or granular loans hold a lot of promise. To build a granular loan portfolio with patience and nuance, we respect each other’s experience and expertise. The strengths of DCB Bank and Techfino complement each other, and this is an opportunity for both companies to expand their consumer franchise.”

Jayaprakash Patra, Co-Founder Director, Techfino Capital Private Limited, said, “The association with DCB Bank is an important milestone. Using TCPL’s comprehensive technology platform, we hope to build a win-win environment by providing our customers with a variety of customised financial solutions. The funds raised will be used in enhancement of the current tech stack apart from on-lending to customers.”



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