Page 6 - Banking Finance February 2022

BANK UPDATE

A memorandum of understanding was terland of the country looking for adop- familiar with the matter. The bad
signed between HDFC Bank and IPPB tion of farm mechanisation to enhance bank's regulatory framework is being
to cater to the majority of over 4.7 productivity of crops. worked out.
crore customer base of IPPB. India's largest bank underscofed that "We are currently busy setting up the
About 90 per cent of IPPB customers it is actively looking at co-lending op- infrastructure as we aim to generate
reside in rural areas, which may ben- portunities with multiple NBFCs for fi- write-backs for lenders by the end of
efit from this tie-up. nancing farm mechanisation, ware- this financial year," one of the senior
house receipt finance, Farmer Pro-
HDFC Bank said the strategic alliance executives involved in the matter told.
will enable IPPB to provide affordable ducer Organisations (FPOs) etc., for en-
and diversified offerings, including ac- hancing credit flow to double the farm- RBL Bank, Bajaj Finance
cess to finance, to its customers ers' income.
through its innovative Doorstep Bank- Dinesh Khara, Chairman, SBI said "This extend co-branded credit
ing Service. partnership shall help SBI to expand cards tie-up
customer base as well as connect with
With nearly 2,00,000 postal service RBL Bank announced the signing of an
providers (Postmen and Gramin Dak the underserved farming segment of agreement with Bajaj Finance Ltd
Sevaks) equipped with micro ATMs and the country and further contribute to- (BFL) for the extension of the partner-
biometric devices, IPPB caters to the wards the growth of India's farm ship of co-branded credit cards for 5
needs and requirements of various cus- economy. years to December 2026.
tomer segments. "We will continue to work with more In FY2018, the Bank had entered into
NBFCs in order to reach out to maxi-
With this partnership, HDFC Bank aims a partnership with Bajaj Finance,
to further strengthen its financial inclu- mum customers in far flung areas and launching a series of co-branded credit
sion drive by leveraging the robust and provide last mile banking services." cards.
extensive distribution network of Gaurav Gupta, MD & CEO, Adani Capi-
IPPB's 650 branches and over 136,000 tal said, "Through this partnership our Per the Bank's FY2019 annual report,
banking access points across India, the aim is to contribute to farm FY2019 also saw the RBL Bank - Bajaj
bank said. mechanisation and play a role in im- Finance co-brand portfolio cross the 10
lakh cards mark, making it one of the
"By bringing banking at the doorsteps proving productivity and income of the largest co-branded card partnerships
of customers, IPPB is steadily trans- farm segment." in the country.
forming and reshaping the financial
inclusion landscape across the country. State-backed bad bank to Banks may clock 36% rise
commence operation in in Q3 net profit
SBI inks pact with Adani
Jan The listed banks are likely to post a
Capital for co-lending to
The long-awaited state-sponsored bad 36.3 per cent year-on-year (YoY) rise in
farmers bank is set to kick off its business just net profit at Rs 38,153 crore for the
State Bank of India (SBI) has signed a in time for the banking industry to December quarter (Q3FY22), helped
master agreement with Adani Capital dress up its balance sheet as the fiscal by a lower provisioning burden for
for co-lending to farmers for purchase year comes to an end in a quarter. stressed loans. Sequentially, net prof-
of tractor and farm implements, to in- Banks may generate one-off gains as its may decline 2.2 per cent from Rs
crease efficiency in farm operations they have already fully provided for 39,022 crore in Q2FY22, according to
and productivity of crops. those sticky loans estimated at about Bloomberg's estimates.
Adani Capital is the non-banking fi- Rs 82,000 crore in 22 accounts. The projection is based on analysts'
nance company (NBFC) arm of Adani The bad bank plans to recruit as many assessments covering 19 lenders - six
Group. as 50 professional executives for the public sector and 13 private banks.

SBI, in a statement, said with this part- asset management company (AMC) - Domestic brokerage Motilal Oswal said
nership, it would be able to target India Debt Resolution Company Ltd earnings of private as well public sec-
farmer customers in the interior hin- (IDRCL) - to begin with, said people tor banks are likely to pick up.

6 | 2022 | FEBRUARY | BANKING FINANCE