Page 118 - Demo

8.1.6.2.5. Personal Loans (PL)
In its effort to diversify the composition of its asset book, the Bank has rolled out its Personal Loan product in select cities. During the year, the Bank had expanded its geographical footprint from 14 to 36 cities. The Bank uses multiple sourcing channels such as Direct Selling Agents, Internal Staff and digital platforms. there have been key learning’s from the initial stage of operations and the Bank has initiated a slew of policy measures especially through clear demarcation in segmentation, targeting and positioning. However, there is a need to revisit the business strategy due to the COVID-19 pandemic. The Bank intends to revamp its product offerings with focus on non-impacted industries, push for super-prime and prime segment of customers and government employees. The Bank also intends to revamp its operations and replace its Loan Operating System with end to end digital acquisition. For risk monitoring purposes, the Bank has designed Early Warning Systems to maintain and monitor credit quality. the priorities for the ensuing financial year will be to launch in new markets, scale distribution across all channels and also explore partnerships with select Fintech companies for sourcing though the overlay will be the Bank’s own credit policy parameters.
The trend in portfolio growth on a quarter of quarter basis is summarised below
8.1.6.3. treasury
The Treasury Department of the Bank comprises of 3 independent units i.e. Front office, Middle office and Back office. the Front office is responsible for trading, investment and fund management activity. Front office is headed by Head of Treasury and is guided by Board approved Investment policy. Middle office is responsible for limit monitoring, valuation, regulatory / internal reporting and risk evaluation. Middle office reports to Chief Risk officer. Back office is responsible for settlement and reconciliation activities which reports to Head of Operations.
investments: The Bank has a Board approved policy to make investments in both SLR and Non SLR securities. However as at March 31, 2020, the Bank’s investment book consisted only of SLR investments except for one investment in a Non SLR security of `10 Lakhs which was passed on to the Bank from the Holding Company at the time of Business Transfer. The investment into SLR securities is undertaken for the purpose of regulatory compliance i.e. SLR maintenance and for Asset Liability Management (ALM). Investment in SLR securities is held as both HTM and AFS, though holding in AFS comprises mainly investments in Treasury Bills only. The investment in non SLR securities is mainly for short term cash deployment and for investment income. The market value of SLR investments as at March 31, 2020 was `239,600 Lakhs with an appreciation over book value by `2,339 Lakhs. As permitted by RBI guidelines, the Bank moved a part of its HtM portfolio in the first month of the current financial year and booked a token profit.
As a matter of policy, the Bank maintains SLR securities in excess of the mandated regulatory requirement. This also helps the Bank to maintain a comfortable position in SLS and helps in borrowing through Repo and TREPS. Since the SLR investment portfolio of the Bank is divided among HTM and AFS portfolios and only Treasury Bills are held in AFS portfolio the Bank was not required to maintain provision on investment portfolio on account of this classification.
The mandatory requirement for maintenance of SLR as stipulated by RBI, for the period under review was 18.75% of Net Demand and Time Liabilities (NDTL) till October 11, 2019, reduced to 18.50% of NDTL from October 12, 2019 to January 3, 2020 and further to 18.25% thereafter, till the end of the review period. The RBI had announced a staggered reduction in SLR requirement to be held by banks, reducing every quarter till April 11, 2020. The Bank has complied with the regulatory SLR requirement and has maintained SLR much above the requirement. RBI, through its statement on developmental and regulatory policies dated March 27, 2020, announced a reduction in CRR requirement from 4% to 3% valid with effect from fortnight beginning March 28, 2020 for one year, ending on March 26, 2021. RBI also announced a reduction in minimum daily CRR balance maintenance from 90% to 80% effective from 1st day of the reporting fortnight beginning March 28, 2020 valid up till June 26, 2020.
` in Lakhs
Particular
June’19
sept’19
dec’19
Mar’20
# Customers
OSP (` in Lakhs) PAR > 30 Days
1,783
2,784
0.50%
3,200
5,101
1.31%
4,832
7,705
1.65%
5,335
7,858
3.92%
8.1.6.2.6. vehicle finance
As at March 31, 2020, the Vehicle Finance business had crossed the benchmark of `1,200 Lakhs and the product were made available from 43 branches. The Bank has partnered with various OEMs as part of its business strategy. The entire business model is cashless for disbursement and repayment. A brief summary of the portfolio is as follows:
vehicle Loans
feb 2020
Mar 2020
apr 2020
Count 1546
OSP 1,061 Overdue 0
` in Lakhs
1,835
1,259 4 (7 cases)
1834
1,254
8(16 cases)
The Bank is currently exploring other tie-up options and increasing its manpower requirements across regions. the Bank intends to provide its offerings in the MMCV (Micro and Mini Commercial Vehicle) segment in the ensuing financial year. Due to the CoVID-19 pandemic, the Bank intends to adopt a cautious approach up to September 2020 with more focus on collections and follow up in post disbursement documents of existing cases. Sector wise analysis for impact of COVID-19 is being undertaken to identify potential areas for growth while desisting from high risk segments.
116 | AnnuAl RepoRt 2019-20