Page 5 - Banking Finance August 2024

BANK UPDATE

Banking

SBI YONO to issue online SBI, in its statement, added that it has ing channels, and from issuing new
become the first public sector bank credit cards, due to information tech-
loan facility against MF (PSB) to offer end-to-end digital loan on nology-related deficiencies.

units mutual fund schemes in India. "We have been adding roughly 150
State Bank of India's internet banking odd branches for several years now.
app, YONO, has introduced an online Time to push divestment This year too, the momentum is going
loan facility against mutual fund units. of PSBs, says SBI report to continue," Virat Diwanji, group
This will enable customers to avail president and head - consumer bank,
loans from the comfort of their homes, The government should go ahead with told.
indicating that it would be 100 per cent disinvestment of public sector banks Before the RBI's order, Kotak was
paperless and a digital process that (PSBs) as they are in good condition,
SBI said in its research report. heavily reliant on digital channels to
would be available 24x7. source new clients. About 95% of its
The report also pitched for the consoli-
The new loan facility will be available new personal loans by volume were
to mutual fund schemes of all asset dation of existing government-owned disbursed digitally in the October-De-
management companies (AMCs) regis- banks. cember quarter, while it issued 99% of
tered with CAMS. This development, "As banks are in good condition, the new credit cards through digital chan-
the lender said, is a marked upgrade government should take stance on dis- nels. A similar breakup for the January-
from the previous service that was lim- investment of PSBs," the report titled March quarter is not yet available.
ited only to loans against SBI Mutual 'Prelude to Union Budget 2024-25' said.
Fund schemes, and available only
through branches, which meant cus- Kotak Bank to add up to PSU bank deputy manager
tomers had to physically visit the offices. held for siphoning off fund
200 branches in FY25
"We are pleased to introduce Loan A deputy manager of a leading PSU
against MF Units facility for our cus- Kotak Mahindra Bank will increase its bank was among two people detained
tomers on internet banking and YONO pace of opening new branches and add for siphoning off Rs 26 lakh from the
app. We believe that the digitalization about 175 to 200 branches in the finan- bank account of a former DIG of Assam
of Loan against MFs will enable our cial year 2024-25, a senior official at Police. Police registered a case and
valued customers to experience a digi- the bank said, months after the central started an investigation after
tal, hassle-free, and paperless loan bank barred the private lender from Bhabadhar Dutta, 84, retired DIG of
sourcing new customers digitally.
process. It will also help them in avoid- police, lodged a complaint that Rs 26
ing redemption of MF Units in case of In April, the Reserve Bank of India lakh was transferred from his account
immediate need of funds," said Dinesh stopped Kotak from adding new cus- at SBI's Barbari branch on several dates
Khara, SBI Chairman. tomers via its online and mobile bank- to several accounts without his consent.

BANKING FINANCE | AUGUST | 2024 | 5