Page 115 - Demo

8.1.6.2.2. Micro and small enterprises (Mse):
region
Mar-19
Jun-19
sep-19
dec- 19
y-o-y growth%
South
North
East
West
grand total
17,695 19,985
16,209 18,481
16,874 20,218
8,307 9,830
59,084 68,514
23,827 26,785
20,277 21,719
26,577 29,995
12,716 14,479
83,396 92,978
` in Lakhs
59.56% 39.99% 85.83% 87.67% 65.65%
STATUTORY REPORTS
28,234
22,691
31,357
15,590
97,872
The MSE vertical disbursed ~`61,100 Lakhs during FY 2019-20 registering a 22% growth over FY 2018-19 (`~49,900 Lakhs) with an average ticket size of `14.60 lakhs. the Bank offered MSe loans from 114 clusters22, covering almost all the Bank branches. As at March 31, 2020, the share of secured loans within MSE had reached 91% of the total MSE loan book. During the quarter, the Bank availed SIDBI refinance of `4,000 Lakhs to reduce the cost of funds. The Bank has completely stopped its unsecured MSE product and the residual amount is being allowed to run off. Collection effort was stepped up in the clusters that are affected to contain further slippages up to March 24, 2020.
The Bank has taken cognizance of the underlying risks in this market and had internally defined triggers for
active monitoring. To improve / monitor its asset quality, the Bank has implemented a “cluster improvement plan” with specific credit tightening in stressed sectors based on internally defined triggers at cluster level. through this initiative, the Bank has tightened credit appraisal criterion, raised delegation of sanction to higher authorities and provided focused efforts on collections and recovery. These clusters are continuously monitored until such time that improvement is shown especially with respect to arresting PAR.
On the technology front, the Bank is continuously looking at opportunities to improve its operational efficiency through regular patch updates, and introduction of new functionalities in its systems. These enhancements are aimed to improve tAt and officer productivity.
The distribution of PAR as at March 31, 2020 was as follows:
asset Quality distribution
4.89
2.07
South 1-90 Days
4.51
2.83
2.56
2.69
East
2.75 2.97
West
2.43
2.87
Ujjivan
> 90 Days
6.63
4.06
North Overall PAR
5.72
5.30
1.82
Mar-20
22For the purpose of operational efficiency, the Bank has grouped branches into clusters. on an average, there are 3-5 branches in every cluster. the definition of a cluster is flexible to cater to internal operational follow-up and credit monitoring.
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