Page 8 - Banking Finance April 2021

BANK UPDATE

Indian Bank holds a 38.26% stake in YES Bank launches 'YES been amalgamated with Union Bank of
ASREC (India) Ltd. and the decision to India.
divest stake is part of monetisation of Essence' for women from IT integration of both the banks has
the bank's non-core assets. every walk of life been completed without changing the
ASREC (India) Ltd. acquires Non On the occasion of International customers' account numbers. IFSC code
Performing Assets (NPAs) from banks Women's Day on 8 March, YES Bank of e-Andhra Bank will begin with
and financial institutions at mutually has announced the launch of 'YES UBIN08 and e-Corporation Bank with
agreed prices with an objective to Essence', which is dubbed as a holistic UBIN09 and the customers will have to
maximise the returns through banking proposition for women across get new cheque books with revised
innovative resolutions strategies. customer segments - homemakers, IFSC and MICR codes.
salaried professionals, entrepreneurs
HDFC Bank launches and senior citizens. Expect moderately worse
'SmartUp Unnati' progr- This new holistic banking proposition banking sector outlook for
amme for women entrep- offers a bouquet of solutions including the next fiscal: Fitch
complementary healthcare benefits,
reneurs earn on an auto sweep to FD, Fitch Ratings has recently stated that
HDFC Bank has recently announced preferential pricing on loans, fee it expects a moderately worse sector
the launch of a mentoring programme waiver on Demat and trading account, outlook of the Indian banks for the next
'SmartUp Unnati', under which senior wealth management, offers on fiscal beginning April 1, 2021 based on
women leaders from HDFC Bank with upskilling through partnerships, muted expectations for new business
expertise spanning domains will attractive lifestyle and shopping offers, and revenue generation, and
mentor women entrepreneurs in among many more. deteriorating asset quality.
helping them achieve their goals over The rating agency highlighted that the
Rajan Pental, Global Head, Retail
the next one year. 'SmartUp Unnati', Banking, YES Bank, said, "The holistic impact of the COVID-19 pandemic is
which is available only to the existing proposition has been thoughtfully likely to pose challenges to Indian
customers, targets more than 3,000 banks' improving financial
curated to empower women in the
women entrepreneurs associated with very roles that they have chosen for performance once asset-quality risks
the bank's SmartUp programme. manifest in the financial year ending
themselves - extending opportunities
Smita Bhagat, country head, for self-enrichment, right from finance March, 2022.
government & institutional business, e- to healthcare. This unique proposition Indian banks have reported lower
commerce and start-up banking, HDFC with exclusive privileges aims to impaired loans and improved
Bank stated, "We firmly believe in empower women and support them in profitability for the 9 months ended
providing equal opportunity and have the pursuit of their dreams and December, 2020 due to various
facilitated women's empowerment aspirations while also making their forbearance measures and continued
over the years." banking experience a rewarding one." large write-offs. Indian banks, mainly

She added, "In the start-up ecosystem, the state banks, remained more risk-
women entrepreneurs are often faced e-Andhra, e-Corporation averse than in prior years, which was
with challenges unique to them. We Bank branches change reflected in their weak credit growth.
believe HDFC Bank's 'SmartUp Unnati' As the forbearance measures unwind,
is the perfect platform for them to IFSC codes Fitch expects the Indian banks to
benefit from the experience of our The IFSC codes of e-Andhra and e- reverse the improvements in asset
women leaders. It will provide them Corporation Bank branches have been quality and profitability, with state
access to mentorship, expand their changed recently. The old IFSC codes banks more vulnerable to higher stress
vision, and enable them to scale up of both the bank branches will be than private banks, which have better
their businesses by widening their invalid from April, 2021 since the e- profitability and higher contingent
horizons." Andhra and e-Corporation Bank have reserves and capitalisation. T

8 | 2021 | APRIL | BANKING FINANCE