Page 7 - Banking Finance April 2022

BANK UPDATE

career with SBI in 1985 as a probation- The customer experience has to be at 6.1 % and 7.6 %, respectively, for
ary officer, will retire on May 31,2022. taken up on priority to present Only FY23. It expects provisioning cost for
The positions of two whole-time mem- YONO as a competitive product/plat- FY22 at about 1.5 % and 1 % in FY23.
bers at Sebi were vacant at Sebi, after form in the market. It will improve the
the tenures of G Mahalingam and cost-to-income ratio of the bank, said 78% bankers see frauds
Madhabi Puri Buch ended last year. the executive, but did not provide a rising in 2 years: Survey
Buch was appointed as the Sebi chair- timeline for making the app a com-
person last month. The other two plete DB. Around 78% of bankers expect fraud to
whole-time members on the board of increase over the next two years be-
Sebi are SK Mohanty and Ananta Banking sector health at cause of the current business disrup-
tion due to the pandemic. The fear of
Barua.
its best in decades fraud is triggered by the reduction in
The government has also nominated India Ratings and Research (Ind-Ra) human contact due to large-scale re-
two officials to the regulator's board. has revised the outlook on the overall mote working and an increase in cus-
Ajay Seth, secretary, Department of
banking sector to improving for FY23 tomers using non-banking channels for
Economic Affairs (DEA) has been ap-
from stable, as the banking system's transactions.
pointed in place of Anand Mohan Bajaj, health is at its best in decades. The
additional secretary, DEA. The govern- improving health trend that began in According to the Indian Banking Fraud
ment has nominated Rajesh Verma, FY20 is likely to continue into FY23, Survey released by Deloitte, the most
secretary, Ministry of Corporate Affairs common concern for bankers is loan
Karan Gupta, Director, Ind-Ra, said in
(MCA) in place of KVR Murthy, joint a report. fraud (24%) followed by fraud in
secretary, MCA. internet & mobile banking (14%). Re-
Furthermore, key financial metrics are spondents cited limited monitoring of
likely to continue to show improve- assets after disbursement (38%), the
SBI to revamp banking
ment in FY23, backed by strengthened economic slowdown (24%) and insuffi-
app YONO, position it as balance sheets and an improving credit cient due diligence prior to disburse-
complete digital bank demand outlook with an expected ment (21%) as the top three factors
commencement of corporate capex leading to higher problem loans. These
State Bank of India will revamp its bank- cycle.
ing application (app) YONO and posi- suggest that banks may need to over-
tion it as a complete digital bank (DB) While the tightening liquidity would haul their due diligence and monitor-
under a new rubric 'Only YONO' for push up interest rates, impacting trea- ing frameworks.
enhancing customer experience and sury gains, it would at least partially "The number of fraud incidents encoun-
ease of use. offset in the short term as loans get tered by banks over the last two years
repriced faster than deposits, as per appears to have increased, compared
The bank plans to bring in a consultant
to help draw up the project plan, keep- Ind-Ra's assessment. Almost one-third with the findings of our previous sur-
of the system's loans are linked to ex- vey. Around 53% of respondents indi-
ing in mind business goals for the next
ternal benchmark rates. cated that they have faced more than
five years. With 54 million monthly
active users (MAUs), SBI YONO has Ind-Ra has marginally revised its credit 100 fraud incidents in retail banking
seen growth of over 35 % in MAUs in growth estimates to 8.4 % from 8.9 % (over the last two years) - a 29% in-
2021. for FY22 and 10 % for FY23. The crease since the previous edition," the
growth will be supported by a pick-up report said.
The gamut of the advisor's work will
cover the launch, with focus on con- in economic activity post Q1 FY22, According to the report, bankers said
tinuous innovation, adoption strategy, higher government spending on infra- they have managed to detect fraud
structure and a revival in retail de-
speed of delivery of new journeys, and largely during routine audit and recon-
positioning it as a DB, said senior SBI mand. ciliation followed by proactive mea-
executive. The bank has issued an ex- The credit agency estimates gross non- sures through internal automated data
pression of interest to appoint an ad- performing assets (GNPAs) at 6.3 % and analysis or transaction monitoring soft-
visor. stressed assets at 8.7 % for FY22 and ware. T

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