Page 17 - Banking Finance April 2020
P. 17

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         also the board has been superseded by  by the PNB brand, adequate liquidity  technological solutions contributing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.

















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