Page 113 - Demo

The Bank intends to fully leverage and unlock the potential in digital loan processing and digital repayment methods. In this regard, the Bank has started repeat loan processing over phone on a pilot basis. Repeat loans shall be offered through this medium to sets of pre-screened customers. Trainings across regions have been completed with specific branch trainings which are currently underway. On the collections side, the Bank has tied up with Airtel payment bank to leverage their vast network. The Bank intends to on-board such agents across forty branches to begin with.
With the multiplicity in sources of credit to microfinance customers and without a uniform regulation, safeguarding the interests of low-income-customers, who are generally quite vulnerable, was becoming increasingly challenging. For this purpose, a meeting of all Providers of micro-credit was called to agree and adopt a uniform-common code for customer-conduct in micro-credit. This code was titled ‘Code for Responsible lending (CRl) in Micro-credit’. this document defined the elements of Code for Responsible Lending (CRL) which is sector specific and entity agnostic. this code was applicable to unsecured micro-credit loans19given to microfinance segment20 by all Providers21. The CRL document dealt with guidelines encompassing areas of
fair interaction with customers, suitability of products, education and transparency in offerings, information and privacy of credit information and grievance redressal mechanism. The Bank has obtained the necessary approval from its Board and has adopted the CRL document formally notified the CRl steering committee about its acceptance. The Bank also provides information (as per pre-specified format) on quarterly basis to the CRL steering committee.
The Committee was informed that the CRL document would be signed and submitted to the CRL Steering Committee on approval.
8.1.6.2. non-Microfinance Portfolio
the non-microfinance portfolio includes advances for secured Housing, MSE loans, Agriculture Loans, Personal loans, Institutional Loans and a very small book for vehicle finance. the entire non-microfinance loans contributed 23% i.e. (`321,652 Lakhs) of the total advances. From a risk management perspective, the Bank has put in place various frameworks for risk identification, risk measurement, risk mitigation and risk monitoring. The intended purpose was to establish a robust governance, risk and compliance framework for the newer portfolios. These frameworks would help the Bank to identify incipient stress and provide early warning signals of stress.
A brief description of the performance in each category is furnished as below:
8.1.6.2.1. secured housing
South 25,660
North 15,509
East 9,325
West 32,505
30,618
16,892
11,563
41,534
100,607
2.77
Sep
36,605
18,526
14,633
51,406
121,169
42,170
19,748
17,214
58,921
138,053
2.56
Dec
` in Lakhs 79.95%
32.63% 109.72% 103.09%
83.52%
1.76
0.87
Mar
STATUTORY REPORTS
housing Loans
Mar-19
sep-19
y-o-y growth%
46,176
20,570
19,556
66,015
grand total
Par & gnPa (%)
82,998
152,318
3.03
0.63
2.46
0.72
2.97
June
2.18
July
2.44
0.97
Aug
2.55
1.03
Oct
2.20
Nov
2.36
Jan
2.18
Feb
April
PAR GNPA
May
0.74
0.85
0.98
1.01
0.85
0.89
0.79
Jun-19
dec- 19
Mar-20
19For NBFC-MFIs, these loans come under ‘qualifying asset’ criterion. It may be noted individual loans i.e. loans without the group liability and where repayment capacity of the customer is thoroughly assessed by the Provider are outside the purview of CRL.
20As defined by the RBI.
21provider is defined as a legal entity, which provides micro-credit in line with RBI norms under ‘qualifying assets’ criterion for nBFC-MFIs and provide their data to Credit Information Companies (CICs). Therefore, Provider includes entities such as NBFC-MFI, SFB, Bank, NBFC, Section 8 Company etc. It is clarified that all micro-credit loans delivered directly or indirectly (such as under partnership model or through securitization, direct assignment or co-origination) are covered.
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