Page 7 - Banking Finance May 2021

BANK UPDATE

deposit base, retail inflation has been Reinforcement of Financial Assets Act reduce paperwork and most
eroding returns for savers. However, (SARFAESI), Debt Recovery Tribunals importantly provide a single seamless
that has not deterred investors from (DRTs), the Insolvency and Bankruptcy platform to invest in various
parking their money in bank deposits. Code, civil suits, Revenue Recovery investment instruments including
As of March 12, bank deposits stood at Act, Lok Adalat, insurance, valuation, Mutual Funds, SIP, equities and other
Rs. 149.55 trillion, up 12% from a year vehicle loan non-performing assets, investment avenues offered by Axis
earlier. and engagement of recovery agents. Securities. The customers can opt for
various services of Axis Securities like
Motilal Oswal, Founder, Motilal Oswal For instance, in case of a Corporate Mutual fund investing, Stock broking,
Financial Services Limited, said, "Most Insolvency Resolution Process (CIRP) Investment advisory and Portfolio
banks are focusing on garnering initiated by the bank, the solution
management services, along with the
deposits (particularly current account must be able to issue a template-based opening of Trading/Demat account.
and savings account and retail term permission note for filing an NCLT
deposit) to ramp up their liability application from the branch to the Ajay Kanwal, MD & CEO, Jana Small
franchises and reduce dependence on appropriate authority through the Finance Bank, stated, "We are
delighted to give our customers access
bulk deposits." respective office. It should be able to
to a scalable 3 in 1 platform. This tie-
take care of matters like forwarding
All three banks reported healthy up with Axis Securities will continue our
the communication to the advocate
growth in current account and savings endeavor in building meaningful
account (CASA) deposits in the March from the branch as also to capture the relationships with our customers by
quarter. While HDFC Bank's low-cost hearing date-wise movement of the providing them with access to smart
CASA deposits grew 27% from a year case and recovery made during the financial planning tools that will help
earlier to Rs. 6.15 trillion in the fiscal pendency of the case. them in wealth creation journey. We
fourth quarter, Federal Bank's CASA In the vehicle loan NPA module, the believe the key attraction for Jana
deposits expanded 26% to Rs. 58,381 solution should capture all such NPA customers will be mutual funds SIP
crore. accounts and wherever vehicles have where they can invest a pre-decided
been taken as collateral security. amount every month in MF scheme of
Union Bank of India to Thereafter, it should enable system- their choice."
based auto generation of notices to the Commenting on the partnership, B.
digitise recovery processes borrowers as per the timeline Gopkumar, MD & CEO, Axis Securities,
According to a tender document issued prescribed and to send reminders to remarked, "We are confident that Jana
by Union Bank of India, the lender is branches, whenever essential. Small Finance Bank customers will
looking to digitise and automate its benefit from seamless and convenient
recovery processes. It has sought bids Jana Small Finance Bank access to our technology-driven,
from vendors to implement the joins hands with Axis dynamic range of products and
software solution and maintain it for valuable research insights. This tie-up
five years. Securities to offer services is another step in our journey to
The document read, "Bank intends to through 3-in-1 account empower investors to take charge of
their finances by making informed
implement a software solution for Jana Small Finance Bank recently
digitising and automation of recovery announced its tie-up with Axis investment decisions."
portfolio and creating a single platform Securities to offer its customers the SBI clarifies on home loan
database solution which should be perfect blend of banking and investing
capable of handling the modules… through 3-in-1 account which rates, declares original
Bidder needs to design, implement and integrates seamlessly Savings Bank interest rates restored
manage the entire software solution Account maintained by Jana Small State Bank of India has recently
for the period of five years." Finance Bank & Demat and Trading clarified on the recent hike on the
The various modules which the bank Accounts maintained by Axis Securities. home loan interest rates.
plans to digitise include proceedings The 3-in-1 account will make it easier "In the last few days, there have been
under Securitisation and for customers to transfer funds quickly, news items reported in the press

BANKING FINANCE | MAY | 2021 | 7