Page 5 - Banking Finance April 2021

BANK UPDATE

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News

ICICI Bank reduces home and mortgages, but offers spending While there has been a rapid growth
and budgeting analytics, remittances in the branch network of SFBs since
loan, lowest in a decade services, peer-to-peer payments and their inception, this growth has been

ICICI Bank Ltd has recently slashes its bill payments. markedly concentrated in the
interest rate on home loans of up to The Dubai-based YAP does not have a southern, western and northern
Rs. 75 lakh to 6.7%, its lowest in 10 banking licence itself but has partnered regions, which are known as the
years. According to the bank, the new with RAK Bank that provides relatively wellbanked regions in the
interest rate will be applicable till 31 international bank account numbers for country, said RBI officials Richa Saraf
March, 2021. The interest rates begin YAP users and secures their funds and Pallavi Chavan in an article in the
at 6.75% for loans above Rs. 75 lakh. bulletin.
under its own banking licence.
Ravi Narayanan, Head (secured According to Katral-Nada Hassan, Head SFBs' penetration in the northeastern
assets), ICICI Bank, stated that the of Product, YAP is also in the process of region, which is known to be the least
bank is seeing a resurgence in demand joining hands with banks in other banked region, remains low, they
from consumers, who want to buy countries, including a bank in Saudi, added. Following the issuance of the
homes for their own consumption, in Pakistan and Ghana. Hassan stressed licensing guidelines in 2014, 10
the past few months. "We believe that that there are challenges for fintechs SFBs have commenced operations so
this is an opportune time for an looking to expand to the UAE. "There far. The first two, Capital Small Finance
individual to buy his/her dream home,
are a lot of fintechs right now looking Bank and Equitas Small Finance Bank,
considering the prevailing low interest at partnering with banks, but that started operations in 2016, followed by
rates", he added.
requires a lot of discussion, relationship seven more in 2017 and one more in
building... It is not an easy thing to do", 2018. SFBs had 4,307 branches as of
Neobank: UAE launches she said. March-end 2020.
county's first independent At the State level, while SFBs are
Small Finance Banks have making their presence felt in some of
digital banking platform
The first independent digital banking wider presence in well- the under-served States such as
Madhya Pradesh (7 per cent share in
platform in the UAE was recently banked States total branches) and Rajasthan (8 per
launched, a neobank hoping to
Small Finance Banks (SFBs) have cent), they continue to be
become a leader in the Middle East,
greater concentration of branch concentrated in Tamil Nadu (16.6 per
South Asia and Africa.
network in relatively well-banked cent), Maharashtra (13.1 per cent),
Like any other neobanks, YAP too does States, according to an assessment in Karnataka (7.7 per cent), Kerala (5.5
not have physical branches and the Reserve Bank of India's latest per cent) and Punjab (4.7 per cent) -
traditional banking services like loans monthly bulletin. States with some of the lowest

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