Page 17 - Banking Finance April 2020

HOUSING

comes amid arrest of Yes Bank co- non-banks in the mid-to-higher ticket applications and analytics ecosystem.
founder and former CEO Rana Kapoor, size housing loan segment, increasing Bajaj Housing Finance, a 100% subsid-
on alleged money laundering charges pressure on asset quality and higher iary of Bajaj Finance is constantly aim-
and that the loans by the lender to leverage in view of the portfolio com- ing at excellence and innovation
DHFL turned sour. position. through digital transformation.

Yes Bank has been put under morato- The rating takes into account the size- Anurag Jain, Chief - Information Tech-
rium until April 3, during which period able pan-India franchise of PNBHF, its nology (CIO & CTO), Bajaj Housing Fi-
customers will not be allowed to make fairly diversified funding sources, and nance says, "Growing at a significant
withdrawal of more than Rs.50,000, as sufficient access to funding, supported rate annually, we strive for competitive
also the board has been superseded by by the PNB brand, adequate liquidity technological solutions contributing
the Reserve Bank of India (RBI) factoring in the asset profile, and ex- towards business growth and optimiz-
through appointment of an administra- perienced management. ing cost for market differentiation. Our
tor, Prashant Kumar, former executive project, transformation to cloud, was
of SBI. PNB Housing Finance is a deposit-ac- a paradigm shift from legacy applica-
cepting housing finance company. The tions and data centre infrastructure
A plan of reconstruction of Yes Bank is firm provides housing loans to individu- required to meet agility, quality and
underway under the RBI, wherein SBI als for purchase, construction, repair, security."
will stake claim of 49% equity in the and upgrade of houses. It also provides
crippled private sector lender through loans against property, loans for com- Bajaj Housing Finance is the first mort-
an investment of Rs.2,450 crore. mercial property, and loans for pur- gage player in India to have an entire
chase of residential plots, and real es- enterprise IT ecosystem on a public
IRR downgrades PNB tate development loans. cloud (100 per cent cloud), meeting
Housing Finance's NCDs stringent regulatory guidelines. It is also
On a consolidated basis, PNBHF's net the first in India to have serverless ar-
rating to INDAA profit fell 21.8% to Rs.237.02 crore on chitecture for data warehousing and
PNB Housing Finance (PNBHF) a 0.2% decline in total income to Rs analytics which is high performing, rap-
slumped 7.80% to Rs.277.80 after In- 2074.79 crore in Q3 December 2019 idly scalable and secure" claims Jain.
dia Ratings and Research downgraded over Q3 December 2018.
the company's non-convertible deben- "Innovative approach on building open
tures (NCDs) rating to 'IND AA' from Bajaj Housing Finance source back- office processing platform
'IND AA+'. resulted in a cost effective, high per-
adopts Amazon Web Ser- forming system with 100 per cent in-
The rating agency has maintained vice for business applica- ternal customer satisfaction and dedi-
stable outlook on the housing cated application programming inter-
financier's NCDs worth Rs 218.97 crore tions face (API) gateways helped in quick
(reduced from Rs 280 crore). The Bajaj Housing Finance has eliminated turnaround time for onboarding and
downgrade reflects the challenging the physical data centre by adopting ensured seamless partner integrations
operating environment for majority of Amazon Web Services for its business in a secure way," mentions Jain.

BANKING FINANCE | APRIL | 2020 | 15