Page 7 - Banking Finance February 2026

BANK UPDATE

entrepreneurs to meet working capi-
tal needs, expand operations and man- Private bank reports Rs. 11.2 crore loan fraud involv-
age cash flows more efficiently. ing education trust in Hooghly

Commenting on the launch, Sai A private sector bank has filed a police complaint alleging a Rs. 11.2 crore
Giridhar, Managing Director and Chief loan fraud involving an education trust that runs an engineering college in
Executive Officer of Axis Finance, said Hooghly district, West Bengal. According to the complaint, the trust, rep-
micro and small entrepreneurs form resented by three trustees, allegedly submitted forged collateral documents
the backbone of India's economy. He to secure multiple credit facilities from the bank.
noted that the Vyapar Business Loan The lender stated that the same property offered as collateral had already
is intended to support their growth been mortgaged to another financier, while forged deeds were presented
aspirations by offering simple, acces- as genuine to obtain loans. The facilities were secured against three prop-
sible and timely finance.
erties, including the educational institution's property and two residential
The launch comes at a time when de- properties belonging to one of the trustees.
mand for unsecured MSME loans is ris-
ing, driven by improving credit assess- Following the complaint, an FIR was registered at Shakespeare Sarani po-
ment tools and increased focus on fi- lice station on December 31, and the detective department has initiated
nancial inclusion in non-metro markets. an investigation. The bank alleged criminal conspiracy, cheating, forgery and
use of forged documents in connection with three loan accounts.
Asset quality of small fi- Credit facilities aggregating Rs. 12 crore were sanctioned in February 2022,
followed by an additional term loan of Rs. 3.4 crore in October 2022. The
nance banks worsens in accounts turned irregular from mid-2024 and were classified as non-per-
FY25: RBI report forming assets in October 2024. Recovery proceedings have since been ini-
The asset quality of small finance banks tiated before the Debt Recovery Tribunal in Kolkata.
(SFBs) deteriorated during 2024-25,
with the gross non-performing assets moderated to 86.4 per cent from 90.1 options, including competitive interest
(GNPA) ratio rising to 3.6 per cent at per cent a year earlier. The RBI report rates and flexible repayment struc-
the end of March 2025 from 2.4 per highlighted the need for tighter risk tures. The collaboration is expected to
cent a year earlier, according to the management and credit monitoring as improve credit availability for custom-
Reserve Bank of India's Trends and SFBs scale up operations. ers in semi-urban and rural areas,
Progress of Banking in India report. where access to formal vehicle finance
Despite robust balance sheet growth, Maruti Suzuki partners remains limited.
profitability of SFBs moderated during Kerala Grameena Bank to For Maruti Suzuki, the tie-up strengthens
the year. Net profit declined sharply to its retail finance network and supports
?3,496 crore in FY25 from ?6,219 crore expand vehicle financing vehicle sales by enhancing affordability
in FY24, largely due to higher provi- access for a wider customer base. The bank, in
sioning and contingency expenses amid Maruti Suzuki India Limited has signed turn, expands its lending offerings and
rising stress in loan portfolios. deepens engagement with customers
a memorandum of understanding with seeking mobility solutions.
The combined balance sheet size of Kerala Grameena Bank to offer vehicle
SFBs continued to expand at a double- financing solutions to customers across The MoU was signed in the presence
digit pace, outstripping growth seen in Kerala. The partnership aims to pro- of senior officials from both
other categories of scheduled com- vide retail finance for new cars, pre- organisations, including Partho
mercial banks. Term deposits ac- owned vehicles and commercial ve- Banerjee, Senior Executive Officer
counted for 73.9 per cent of total de- hicles from Maruti Suzuki's product (Marketing & Sales) at Maruti Suzuki,
posits as of end-March 2025, reflect- portfolio. and Vimala Vijayabhaskar, Chairperson
ing a relatively stable funding profile. of Kerala Grameena Bank. The part-
Under the agreement, customers of nership aligns with broader efforts to
With deposit growth exceeding credit Kerala Grameena Bank will gain access improve financial inclusion and mobil-
growth, the credit-deposit ratio of SFBs to a comprehensive range of financing ity across regional markets.

BANKING FINANCE | FEBRUARY | 2026 | 7