Page 43 - Banking Finance September 2020

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the customers' shifting to another player in the market. prudent measure, seriously think of resorting to cost cutting
DCCBs may, therefore, cross sell their loaning products by methods at every possible step in all seriousness. The annual
preparing a data base of their loyal customers and identify budgets may be reviewed to identify avoidable expenditure
top-up loans and new loans for customers, who pay their and plug them at the right time. A stitch in time saves nine.
dues regularly and create additional liquidity to the
borrowers at a reasonable rate of interest, however, 6.13. Increasing the contacts with the customers
ensuring the prudent principles of lending. This process can through SMS
be undertaken on a regular basis. There is every need to improve the system of sending
messages (SMS) through bulk mailing to the borrowers under
6.10. Other activities of lending all types of loans whenever the repayment of loan
The following activities, which have, otherwise, demand in instalment or payment of interest falls due. Such regular
rural areas may also be considered apart from their other messages will, for sure, create a sense of responsibility in
lending activities. the minds of at least some customers, if not all.
(i) Milch animals (through JLGs)
7. Way ahead
(ii) Poultry farming (Broiler & layers)
A focused approach, targeting new opportunities while
(iii) Financing a few small & marginal entrepreneurs/ retail
addressing immediate and constantly evolving needs would
traders.
be critical for driving growth in the long run. A few of such
(iv) Tool kits for skilled / semi-skilled workers in conventional initiatives, that were suggested by Monitor Deloitte (India),
trades. (which provides strategic consultancy services) are briefly
(v) Agra-processing units like Dal mills/ beaten rice/puffed indicated in the following paragraphs.
(i) Tactical initiatives to react to the needs of
rice units.
employees, customers, and communities, and
maintain business continuity.
Aforementioned activities are only illustrative in nature and
Y Facilitate a conducive working environment for
the banks may further conduct a survey and identify the
employees.
potential activities in their areas of operations.
Y Enhance customer centricity through digital
6.11. Recovery Management - Tie up with channels and customised offerings.
procurement operations Y Work towards ensuring business continuity despite
At present, most of the PACS are engaged in procurement limited operations.
of Paddy, for which the DCCBs are co-ordinating with the (ii) Use technology to adapt to new ways of working.
nodal agencies like Civil Supplies Corporation, FCI, MarkFed Y Strengthen tech infrastructure for remote access
etc. The farmers are receiving the sale proceeds through (e.g., VPN, security tokens, network bandwidth,
their respective bank accounts. DCCBs may convert this cloud-based systems.
chain of payment system to their advantage by linking the
Y Reduce physical interactions using document
accounts of the borrowing farmers with DCCBs and the scanning, Optical character Recognition (OCR), etc.
aggregators. This will enhance the actual recovery/cash
(iii) Provide 'empathy packages' to boost morale
collections, which will improve their liquidity position for
Y Provide COVID-19 insurance for employees and
diversification.
their families.
6.12. Cost cutting measures Y Set-up an employee support center offering
constant check-ins, counseling, etc.
Present pandemic has also very badly affected the interest
incomes of all the financial institutions as a result of (iv) Enhance digital channel adoption and usage
moratoriums on instalments including EMIs. As the banks Y Run SMS/email campaigns to make customers
do not have any control on external forces, they may, as a aware of digital channels and increase adoption.

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