Page 7 - Banking Finance July 2020

BANK UPDATE

space and analysed by a third-party "...it is informed that a non-perform- use different devices to carry end-to-
firm, for farm loans in 500 villages, ing asset (NPA) account -- Dewan end transactions. The cloud-based so-
with plans to take the technology to Housing Finance Corporation Limited lutions supported by Adobe will also
63,000 villages, it said on Tuesday. (DHFL) -- with outstanding dues of Rs. help customers open accounts digitally,
Banks typically deploy officials to travel 815.44 crore has been declared as without the requirement of visiting a
hundreds of miles across the hinterland fraud and reported to RBI as per regu- bank branch.
to assess irrigation systems, crop qual- latory requirement. Further, the bank The customers will also be able to ap-
ity and land location for forecasting has already made provision of Rs.
ply for loan anytime and would be able
farm revenue to make loans. Agricul- 203.86 crore as per the prescribed to manage investments without any
ture accounted for nearly 15 per cent prudential norms," it said in a regula- physical interface, the release said.
of India's $2.8 trillion economy as of tory filing.
January. Last month, India's second-largest pub- "The association with Adobe comes at
Data from satellite images would help lic sector lender Punjab National Bank a time when digital has become an all-
ICICI Bank cut costs and reduce the (PNB) had declared its Rs. 3,688.58 important bridge between customers
time taken to give out loans, Executive crore exposure to the mortgage lender and businesses," Parag Rao, Country
Director Anup Bagchi told reporters on as fraud. Head - Payments, Consumer Finance,
a conference call. Digital Banking and Marketing at
Once an account is declared fraud, HDFC Bank said.
"It is now taking place in a few days, banks need to set aside 100% of the
as against the industry practice of 15 outstanding loans as provisions, either
days or more," Mr Bagchi said. "The in one go or over four quarters, accord- Banks, unions agree to
biggest upside for us is that there is ing to RBI rules. 15% wage hike
very little wastage of time on getting
the data." Even before PNB, private sector lender Bank managements and trade unions
Karnataka Bank had taken similar ac- agreed on a 15 per cent hike in the
The technology, which will use more tion in June. existing wage bill of 35 lenders, along
than 40 variables for assessing a with a first-of-itskind performance-
farmer's credit-worthiness, will be ap- Earlier this year, the National Financial
plied to a type of farm loan that makes Reporting Authority (NFRA) had linked incentive (PLI) for stateowned
up a third of ICICI's rural loan portfolio started an audit of DHFL accounts and banks.
of about Rs. 57,180 crore, he added. has reached out to its administrator "The annual wage increase in salary
for documents pertaining to the
Banks are currently grappling with and allowances is agreed at 15 per cent
more than Rs. 7.5 lakh crore of soured company's statutory audit for 2017-18. of the wage bill as of March 31, 2017,
loans, and stress in the agriculture sec- which works out to be Rs. 7,898 crore
tor has been rising just as the overall HDFC Bank partners with on pay slip components (annually),"
share of bad loans is coming down. Adobe to give personalised according to a memorandum of under-
Bagchi said satellite imagery - used standing between the Indian Banks'
globally for everything from crop-moni- digital services to custom- Association and the United Forum of
toring and geology to defense and ur- ers Bank Unions, representing workmen
ban planning - could help improve unions and officers' associations. The
ICICI's asset quality over the long term. HDFC Bank announced a strategic part-
nership with Adobe to render wage revision will be effective from
Punjab and Sind Bank de- personalised digital services to its ex- November 1, 2017, and will benefit
isting and new customers, the bank around a million bank employees.
clares DHFL loan account said in a media release. Adobe's cloud- Bank managements and trade unions
as fraud based solutions will enable the custom- agreed on a 15 per cent hike in the
ers to access bank's services "anytime
Public sector lender Punjab and Sind existing wage bill of 35 lenders, along
Bank said it has declared its exposure and anywhere", the release said. with a first-of-its-kind performance-
of Rs. 815.44 crore to Dewan Housing The HDFC Bank release further said linked incentive (PLI) for state-owned
Finance Corp Ltd (DHFL) as fraud. that the customers would be able to banks. T

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