Page 40 - Banking Finance April 2019

ARTICLE

Banking kits to be issued. Thereby it is beneficial both to revenue expenditure will reduce substantially in the long run
the bank (Cost Angle) and also Convenience to the and also the new systems increase the face lifting of the
Customers (i.e., 24 x 7 banking services). branch.

If banks analyze the data of the branch transaction vs. Use of sensors in the branches/offices
alternate channels transactions of their customers and if can In some branches / offices even though employees are not
substantially reduce the foot falls of the customers to performing their duties, still electricity appliances like lights,
branches by customers preferring to use alternate delivery
air-condition is ON position. It not only increases the
channels except to avail Retail / MSME Advances from the monthly electricity bill but also the life the electrical
bank branches, branches can be re-visited on trimming of appliances will decrease. To avoid this situation now-a-days
premises area.
most of the commercial organizations are using sensors to
control electricity costs. Installation of sensors at important
This is a good opportunity to the bank to re-design the places in the branch decreases electricity cost substantially.
branches as per the current requirements, thereby Initially branch may incur additional capital expenditure for
substantial reduction of RTL and Fixed Assets cost like sensors, but in long run it saves electricity costs. Educating
furniture and electrical gadget will come down. This not the staff is very important to control the RTL costs as they
only reduces the RTL but also results in reduction in capital are users of the branch in addition to the customers.
expenditure incurred by the branch for interior design etc.

Use of Solar panels on the terrace of
Sale of outdated and redundant
zonal office / head office / ATM rooms
furniture / stationery laying at Head
Some of the State Government is purchasing power from
Office / Zonal Office / branches the surplus states, thereby per unit cost of electricity for
Old furniture like computer monitors, broken chairs, old commercial purpose is in on increasing trend. In such a
stationery, old record (even after retention period is over) situation, banks should encourage use of solar panels on the
are to be disposed off, thereby it creates space at the top of the branch premises (wherever feasible), thereby they
branch. Old iron furniture always consumes more electricity can avoid stand-by generator system at the branches. Most
(if the branch is in air-conditioned) than wooden furniture. of the branches are having standby generator system and
Old furniture not only occupies the costly branch space, but recurring expenditure like oil, rent and operator salary is to
also leads to bad ambience. Once disposed or sale of old be paid by the branches, but branches are using generator
furniture / stationery by the branch, some revenue will be mostly in summer season.
generated. Good maintenance always improves the face
lifting / ambience of the branch and more customer walk-in If branches install solar panels for electricity it not only
will happen and it gives additional business to the branch reduces the electricity costs but also reduces the
books. Unnecessary / stale posters are to be removed, dependence on alternate current system. Best example is
crowded / too many posters leads decrease in face-lifting Thiruvananthapuram Airport which is operated on solar
and confusion to the customers also. Simple structure / energy system. Initially capital expenditure may be more but
layout and limited advertising material are always preferable it gives long run benefits. To implement this system,
from customer's point of view. incremental cost and incremental benefits study is required
before installing solar panels at the branch as it requires
Use of LED bulbs to save electricity additional capital expenditure.

Electricity bill reduces by using Led Bulbs instead traditional
lighting. Still bank branches are using traditional electrical BEP of the branch
systems (these are in good condition) but it consumes more To reach the break-even-point of a new branch it takes a
electricity. Old electrical appliances are to be replaced with minimum period of 4 to 5 Years. It depends on factors like
new one even though they are in working condition. Even quality of advances, low cost deposits, minimization of
though it requires some additional capital expenditure but overheads from day one onwards and earning exchange and

40 | 2019 | APRIL | BANKING FINANCE