Page 22 - Banking Finance February 2023

Co-Operative Bank

News

Trucap Finance and Quona Capital and Bharti AXA Life In- However, the growth in deposits and
surance as it aims to become the go- advances took a knock as liabilities
Shivalik Small Finance
to bank for small businesses and retail shrunk on the back of high base in
Bank partner up for retail customers. 2020-21, according to RBI's Report on
gold loan assets The bank's cloud-based architecture Trend and Progress of Banking in India.
provides the bank with unmatched
Trucap Finance Limited and Shivalik The combined net profit of UCBs was
agility to effectively manage scale and
Small Finance Bank announced a part- up 85 per cent to Rs.2,881 crore in
power its growth and is live on all re-
nership for sourcing and managing re- 2021-22.
tail payment platforms.
tail gold loan assets. With a loan book
Also, the Amalgamation of a large
of over Rs. 500 crores, TruCap aims to Mr. Rohanjeet Singh Juneja, MD & CEO
debt-ridden and stressed UCB (Punjab
build social capital by providing small of Trucap Finance, said that Trucap has
& Maharashtra Coop Bank) with a
ticket gold loans and business loans to a proven track record of working in
small finance bank also helped improve
its MSME borrowers. close collaboration with reputed finan-
profitability.
According to the partnership, Trucap cial institutions to grow its asset base
On the other hand, the increase in non-
Finance will act as Business Correspon- in a capital-efficient and risk mitigated
dent (BC) for Shivalik Small Finance manner. "Shivalik SFB is a fast-growing interest expenditure, especially staff
Bank and will originate new business new age bank and all of us at Trucap costs, coupled with a sharp reduction
and help in scaling up the customer are excited about the potential scale in non-interest income, had a moder-
base. Interface Ventures, a boutique to which we can build this partnership ating influence.
investment, incubation & advisory ser- over the next 3-5 years". Trucap al-
The Asset quality of UCBs, measured
vices platform promoted by financial ready has a substantial colending part-
by the gross non-performing assets
services veteran Karan Desai has nership for MSME gold loans with Cen-
(GNPA) ratio showed improvement for
worked as the sole advisor to Trucap tral Bank of India.
the first time since 2012-13. They had
for this partnership.
continuously deteriorated during 2015-
Urban Co-op Bank profiles
Shivalik Small Finance Bank is the first
16 to 2020-21 before improving in
Small Finance Bank in India to have improve on bad loan dip, 2021-22.
transitioned from an Urban Coopera-
better profitability The provisioning requirements have
tive Bank with 24 years of experience
also reduced. UCBs showed prudence
in offering retail banking products and The profile of urban co-operative banks
services. Shivalik has recently com- (UCBs) improved in 2021-22 on the and their provision coverage ratio in-
pleted maiden equity raise of over back of augmented capital buffers, a creased year-on-year, although it still
Rs.00 crores of equity capital from decline in bad loans and improved prof- remains below that of commercial
marquee investors including Accel, itability. banks.
BANKING FINANCE | FEBRUARY | 2023 | 19