Page 8 - Banking Finance May 2023

BANK UPDATE

paying in kind. As against the permit- This credit card offering will be tar- their banks and their branches across
ted 15% commission, insurers have geted at mass affluent and above (pre- different sectors, different cities and in
paid up to 70% of the first-year pre- mium segment, including HNIs), he different tier two and tier three towns
mium under various heads. The insur- said. as well. IBA has also started doing in-
ance company paid for the manpower
Mani highlighted that the credit card tensive workshops across different
utilised by the distributor but claimed
market opportunity is huge and demo- states and Union Territories in the
ITC.
graphics in India also work in favour of country," said Manmeet Nanda, Joint
banks, such as DBS, to expand its play Secretary, DPIIT.
Total balance in Jan Dhan in the credit card segment (unsecured
A/C's sees record spurt in debt market). YES Bank, first Indian com-
Currently, DBS Bank India has co-
FY23 pany with over 50 lakh
branded credit card with Bajaj Finserv
The total balance in the basic bank
-Bajaj Finserv DBS Bank SuperCard. shareholders
accounts under Pradhan Mantri Jan
Meanwhile, Mani said that DBS Bank Private sector lender YES Bank has
Dhan Yojana (PMJDY) has registered a
India is also planning to foray into the become the first Indian company to
record surge of Rs. 50,000 crore in the
affordable housing loans segment this have over 50 lakh shareholders, ac-
financial year ended March 31, 2023.
fiscal. It will look to target mostly cus-
cording to the shareholding pattern of
The total balance at the end of FY23
tomers in the Tier II and Tier III cities
the bank on March-end.
stood at Rs. 1.99 lakh crore as against
for selling this product.
Rs. 1.49-lakh crore at the end of the Tata Power was a far second with 38.5
previous financial year. There is also an lakh shareholders, followed by Reliance
DPIIT in talks with IBA to
addition of 5 crore new accounts un- Industries with 33.6 lakh shareholders,
der the scheme. get banks to reach out to according to the December 2022
The total number of beneficiaries start-ups shareholding disclosures.
reached 48.65 crore by the end of the
The Department for Promotion of In- The bank had 50.6 lakh shareholders as
last fiscal compared to 45 crore in the
vestments and Internal Trade (DPIIT) of March 31, 2023, all of whom were
previous financial year. The women
is in discussions with the Indian Banks public shareholders. This was an in-
beneficiaries were over 27 crore.
Association (IBA) on ways to get banks
crease from 48.1 lakh shareholders as
"This is the highest-ever increase in to reach out to Indian start-ups to un- of December 2022, most likely owing
year-on-year basis in the total balances derstand their financial requirements
to the end of the three-year lock-in
which is indicative of the increasing use and help improve penetration of
period for shareholders that held eq-
of these accounts for a variety of pur- branches across sectors and cities, said
uity shares of the bank when it under-
poses by the government as well as the a senior official.
went the reconstruction scheme in
beneficiaries,'' a senior SBI official said,
The government has also allayed fears
March 2020.
adding that the bank was giving a pri-
of a possible start-up funding crunch in
ority to further expand the scope of The end of the lock-in period on March
India, following the collapse of the Sili-
the scheme. 13 allowed for more shares of the bank
con Valley Bank, as programmes such
to be available for public trade. As
as the start-up fund-of-funds, credit
DBS Bank India to launch guarantee and seed fund schemes, such, the number of shareholders of
were providing resilience to the eco- the bank has been steadily increasing
credit card by June
system. since the 17.9 lakh shareholders at the
DBS Bank India Limited, a hundred
time of implementation of the YES
"We have had talks with IBA so as to
percent subsidiary of Singapore head-
Bank reconstruction scheme.
take proactive steps to reach out to
quartered DBS Bank, will by June this
year roll out its proprietary credit Indian start-ups, understand their fi- Since then, the total number of shares
cards, Bharath Mani, Executive Direc- nancial requirements, to understand held has also more than doubled from
tor (Head-National Distribution) said. how to improve the penetration of 1,255 crore to 2,875 crore.
8 | 2023 | MAY | BANKING FINANCE