Page 7 - Banking Finance March 2022

BANK UPDATE

The bank had earned a net profit of Rs "Our bank has disbursed Rs. 1.12 lakh gestions, if any, to the RBI, sources
727 crore in the corresponding quar- crore in home loan and home related said.
ter of the previous financial year. loans as on Jan 22 during the current
The RBI in December extended the
Its total income during the October- financial year," the spokesperson said, restrictions on Punjab and
December quarter of 2021-22 declined responding to ET's query. Maharashtra Cooperative (PMC) Bank
to Rs 19,453.74 crore from Rs About 40% of such disbursements for another three months till the end
20,102.84 crore in the corresponding came from tier-1 cities while the rest of March, 2022 as all necessary process
quarter of the previous financial year, has come from other cities and towns. on the draft scheme for the takeover
Union Bank of India said in a regulatory The average ticket size of such loans is was not complete.
filing. said to be at Rs 34 lakh. As per the Banking Regulation Act, the
On the asset quality front, the bank's
Mumbai, Hyderabad, Kolkata, draft scheme of amalgamation is re-
gross non-performing assets (NPAs) fell
Chennai, Ahmedabad, Bangalore and quired to be placed before the govern-
to 11.62 percent of the gross advances Pune have a fair share of the disburse- ment for its sanction and the Centre
by the end of the December 2022 quar-
ments. may sanction the scheme without any
ter, compared with 13.49 percent by modifications or with such modifica-
the end of December 2020. "The majority of this year's record dis-
bursements took place between July tions as it may consider necessary.
However, net NPAs increased to 4.09
and now as the infection virulence has
percent, up from 3.27 percent at the been gradually reducing," said one of India1 aims to roll out
end of December 2020.
the persons cited above. 20,000 ATMs
Provisions and contingencies declined
The bank has waived processing fees
significantly to Rs 2,549.58 crore, com- IPO-bound India1 Payments Ltd, which
pared with Rs 5,210.50 crore a year until March 31 this year as the lender is currently rolling out 300-400 ATMs
is aiming to acquire more customers
ago. in a month, is hopeful of deploying over
with an attractive rate of 6.7%. This 20,000 such machines in next 4-5 years
SBI disburses Rs. 1.12 L minimum rate may rise up to 20 basis to ensure cash availability to custom-
points depending on an individual's ers in semi-urban and rural areas, its
crore home loans till Janu-
credit score as provided by CIBIL. MD and CEO K Srinivas said.
ary A customer can save anything between "The hike in interchange fees by RBI
State Bank of India has disbursed a Rs 3,500 and Rs 10,000 on loan appli- coupled with various structural growth
record Rs 1.12 lakh crore of loans to cations depending on the ticket size. It drivers, including expected increase in
individual home buyers until January is pegged at 0.35% of the loan value. cash withdrawal transactions, will ac-
end in FY22 as demand for housing in
celerate White Label ATMs deploy-
the hinterland surged, helping it leap-
frog specialist lenders in the mortgage PMC Bank merger awaits ments in the country," he said.
business. approval The ATMs which are set up, owned
This is a 20% growth over the corre- The proposed merger of debt-ridden and operated by non-bank entities are
sponding period in FY21. Punjab and Maharashtra Cooperative known as White Label ATMs (WLAs).
Home loan disbursements have now Bank with Unity Small Finance Bank At present, the Bengaluru-headquar-
surpassed pre-Covid levels, two indus- (USFB) is being examined and the pro- tered company operates a network of
try sources told ET, underscoring the cess of amalgamation will start after 10,300 WLAs and deploys its ATMs
appetite for new homes among end the government approval, sources under the brand name of
users. said. "india1ATMs".
A spokesperson at SBI confirmed the Various aspects of the scheme of amal- It is the second largest ATM brand in
development, saying the growth was gamation have been examined and the the semi-urban and rural areas after
geographically broad-based. government would soon send its sug- State Bank of India (SBI). T

BANKING FINANCE | MARCH | 2022 | 7