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housing
GNPA for home loans stood at 0.8% against 0.6% in March 2019 while NNPA held steady at 0.40%. PCR stood at 48% as on March 2020 against 35% in March 2019. During the year we have taken steps to introduce credit score cards for the business, which will help in improving the decision time and quality as the business matures. 67% of our borrowers opted for moratorium due to COVID-19 under Moratorium 1.0.
Fig
The Bank forayed into institutional lending to Microfinance institutions and NBFCs catering MSe, affordable housing and Agri-allied enterprises sectors in FY 2018-19. The Loan book registered 100% growth in FY 2019-20. As at the end of the year, the book size was `549 Crores with all accounts classified as standard. All loans are secured and mostly covered by security cover of at least 110%.
Due to the outbreak of COVID-19, a third of the number of borrowers have been granted moratorium up to 3 months by the bank.
Credit policy is regularly updated to enhance the quality of underwriting. Rigorous monitoring of Portfolio is done regularly to check the health of the portfolio.
new Business lines
The Bank has forayed into new loan products such as Personal loans and Vehicle loans. While personal loans are being offered to new to bank customers, especially the salaried class, vehicle loans are mostly being offered to existing MicroBanking customers and their family members. Both the business lines have robust portfolio quality. The focus would be to further build on the digital platforms and enhance underwriting with the use of various e-service and verification platforms.
conclusion
The Bank’s efforts to proactively source quality borrowers and manage their repayments were well-tested during FY 2019-20. The COVID-19 crisis has however been extraordinary, with events unfolding daily and sometimes hourly. The Bank continues to monitor the existing portfolio quality, while scanning the environment for signs of restart of business disbursal. We believe that our existing and proposed investments in people, process and technology, will help the bank emerge stronger and better from the current scenario.
operations
the key initiatives for the operations department for the year:
work- flow to handle customer complaints, queries and service requests
Prior to FY 2019-20, all service requests, queries and complaints of customers, relating to MSE and housing loans were handled on e-mail. To eliminate the resultant inefficiency, delays and risk of omission, the Bank
switched to processing complaints, queries and service requests through a workflow in the Bank’s customer relationship management application, CRM Next. Around 50 categories of requests and complaints were created in CRM Next, with a pre-defined TAT and escalation matrix for each request and complaint, bringing a high degree of efficiency, resulting in customer satisfaction. A similar workflow was also commissioned in CRM Next to handle queries relating to settlement of insurance claims of deceased borrowers and/or their spouses.
robotic Process automation (rPa) for reconciliation of uPi and iMPs transactions
In October 2019, the department took a major step in the direction of automation by introducing RPA, a tool that facilitates processing large volumes of data in a very short span of time, for reconciliation of UPI and IMPS transactions. The automation offers significant savings in costs, a much higher degree of accuracy, easy implementation and eliminates manual intervention in tasks that are repetitive and rule- based.
The uPI traffic that the Bank handles has grown by 70% in the recent months; likewise, IMPS transactions too have grown by leaps and bounds. Reconciliation of transactions is a resource-intensive task, if done manually. Prior to implementation of RPA, reconciliation of UPI and IMPS transactions would be done by vendors and subsequently checked by the Bank’s own employees. The Bank would pay over 3.5 Lakhs rupees per month to the reconciliation vendor and deploy 1 full time employee just to check the vendor’s output. With the deployment of RPA, the Bank has eliminated the dependency on vendor, not to mention the associated costs; and an employee of the Bank has to spend only 2 hours a day to review the output. Further, the RPA utility can handle incremental volumes without any concomitant increase in time or costs. It has been a gamechanger for the Bank.
daily control Function checklist (dcFc) for branches
To enable a near real-time overview of operations at branches, a 47-point Daily Control Function Checklist (DCFC) was introduced in December 2019. DCFC has to be updated by Branch Managers or Branch Operations Officers daily and it can be reviewed by the Cluster Managers – Branch Operations or any other controlling authority in charge of branches on the next day. This allows Cluster Managers and such other controlling authorities to gauge the state of affairs of operations at branches on a near real-time basis and initiate immediate corrective measures. DCFC also acts as a checklist for Branch Managers and Branch Operations Officers, prompting them to check the critical areas of operations in branches daily.
aadhaar enrolment centres
The Bank was empanelled as a registrar and enrolment agency by unique Identification Authority of India (UIDAI) in August 2018. The Bank extended the Aadhaar enrolment services offered from 16 branches spread across the two states of Assam and Karnataka in FY
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