Page 8 - Banking Finance November 2017

BANK UPDATE

Induslnd Bank's net Ujjivan Small Finance Bank garners Rs. 1,000-crore
profit jumps 25% deposits
IndusInd Bank has reported growth Ujjivan Small Finance Bank has collected Rs.1000 crore in seven months of its op-
in net profit. erations by offering 8% interest. Ittira Davis,
Its net profit Chief Operating Officer said that there has been
for the sec- an encouraging response for the interest rate of-
ond quarter fered on savings with a half per cent higher rates
rose 25 per for senior citizens vis-a-vis 6.5-7 per cent in other
cent to Rs banks. With this growth momentum, the bank
880.10 crore from Rs 704.26 crore a hopes to garner Rs.1500-2000 crore in the first year of operations, he said.
year ago due to higher net interest The bank, according to him, is offering SB account with no charges for minimum
income and other income. balance and also providing host of other benefits such as doorstep banking, mobile
Net interest income for the July-Sep- internet, phone banking etc. The hand held device for biometric authentication
tember 2017 quarter increased 24.7 for instant account opening can also be used for cash deposits, withdrawals and
per cent to Rs 1,820.99 crore from fund transfers at the customers doorstep.
Rs 1,460.31 crore last year. Other in- Asked whether the bank will review the interest rates, he said it all depends on
come was at Rs 1,187.57 crore, up the market conditions. "We will hold the rates for time being". Davis, said that
22 per cent from Rs 970.42 crore. the bank has established its presence across all four regions in the country in the

Provisions and contingencies surged seven months of its launch and is also looking at offering remittances services to
37.34 per cent to Rs 293.75 crore transfer money within Ujjivan and other bank accounts in a very reasonable and
against Rs 213.88 crore in the same affordable manner.
quarter last year. Gross non-perform- With 87 branches, the bank has presence across Kerala, Tamil Nadu, Karnataka,
ing assets (NPAs) rose 49.64 per cent Pondicherry, Gujarat, Maharashtra, New Delhi, West Bengal, Himachal Pradesh,
to Rs 1,345.28 crore from Rs 899.01 Uttar Pradesh, Punjab and Haryana.
crore a year ago. As a percentage of
total loans, gross NPAs stood at 1.08 Credit card usage rising rapidly
per cent as compared to 0.9 per cent The credit card usage is increasing rapidly, with 57 per cent of the cardholders
in the year-ago quarter. Net NPA was doing transactions more than they did a year ago, and
at 0.44 per cent against 0.37 per more people want to join the plastic credit line, says
cent a year ago. a survey. The findings are based on a survey conducted
The Hinduja Group-promoted bank by TransUnion-Cibil, which surveyed 1,088 urban
said its mainstay commercial vehicle adults online between July 13 and 18. "The results
loan book grew 25 per cent, helping demonstrate a clear increase in credit card use
the overall loan growth to 18 per among urban consumers over the last 12 months as more than half (57 per cent)
cent, helping the bank report strong of credit card holders reported using their credit cards more often now than
numbers. Bottom line was also they did a year ago," the survey said.
helped by a stable asset quality and Jio Payments Bank to be launched in December
lower operational cost coupled with
lower cost to income ratio on the Jio Payments Bank, a joint venture between Reliance
back of a savings deposit growth of Industries and SBI, will start operations in Decem-
95 per cent. ber, three people aware of the plans said. "The pay-
ments bank was expected to launch its operations in
Romesh Sobti, Managing Director of October. The launch got delayed as the RBI had
the bank, said total income rose to asked them (Jio Payments Bank) to demonstrate its
Rs 5,395.92 crore from Rs 4,439.72 capabilities to ensure it is ready for a glitch-free
crore. launch," said one person.

8 | 2017 | NOVEMBER | BANKING FINANCE

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