Page 85 - Demo

to enhance productivity levels. Post lockdown, our first priority will be ensuring timely repayment from all our customers by strong focus on collections, while we aim at increasing our penetration in Tier I & Tier II markets where uSFB branches are already present. Region specific product offerings basis impact of COVID-19 are being designed to strengthen our approach of rapid penetration intothesemarkets,cateringtotheaspiringmiddle-class, comprising the semi-formal/informal income segments.
In FY 2020-21, the business will embark on a digital journey for sourcing and servicing customers alongside forming alliances with online aggregators for better outreach. In addition to geographic expansion (mostly Tier III & Tier IV locations), regional policies will also be put in place with product enhancements to accommodate new property segments.
key statistics: housing Loan
on March 31, 2020 against 2.3% in March 2019. We had taken a conscious call to slowdown the MSE in stressed pockets from Q3 onwards, and despite the challenges of portfolio stress and a calibrated approach to business, we managed a healthy 66% y-o-y growth in portfolio.
We also focused on enhancing the deposit relationship of these customers, garnering a deposit book of `27.5 Crores, with a significant CASA ratio. The focus will continue to be on extending holistic banking solutions to the MSE customers by driving synergy with branch banking team and enhancing the relationship value of thecustomers.
The focus for FY 2019-20 has been on secured loans, with no incremental unsecured loans sourced from April 2019. We also forayed into the formal MSME segment with the introduction of MSE Business Edge product with increased ticket sizes up to `2 Crores, targeted at formal MSME units.
Investments in technology such as the Loan Origination System (LOS) mobility module, digital onboarding solution, and process re-engineering will continue to drive efficiency in distribution and credit underwriting processes. We are fully committed to delivering a superior customer experience with a full suite of financial products and services, catering to all segments of the MSE sector.
` Crores Disbursement growth
590
FY 2018-19
OSP growth
830
Mar'19
Mse
844
FY 2019-20
1,524
Mar'20
key statistics: Mse
` Crores Disbursement growth
499
FY 2018-19
OSP growth
591
Mar'19
610
FY 2019-20
980
Mar'20
STATUTORY REPORTS
The MSE sector continues to be an essential cog of the Indian economy, and in the post GST era, this sector is undergoing a transformation in the way it does business, leading to increased formalisation and digitalisation. In these evolving times, the MSE vertical provides business funding and growth capital to the MSE units to help them scale-up. The vertical maintained consistent growth to close at a loan book of `980 Crores on March 31, 2020, with a borrower base of around 14,500. The portfolio quality witnessed some stress especially in the old unsecured portfolio, closing with a GNPA of 2.9% as
83
43%
22%
84%
66%