2. Annual Report
  3. Annual Report 2020-21
  4. Financial Institutions Group Fig

Business Segment: Financial Institutions Group (FIG)

Diversifying our presence

During the year, the team forayed into the higher rated NBFC/HFC entities and engaged with new segments such as Housing Finance Companies (HFC) and Gold Loan Financing Companies on Assets side. The team strengthened deposits and CASA base from FIG segment. Also further deepened existing relationships with financial institutional segment clients.

We cater to banks (PSU/Pvt/Foreign/Payment Banks/SFBs), co-operative banks, mutual funds, insurance companies, NBFCs, private equity firms, capital and commodity market entities and other financial institutional clients.

QUICK FACTS
₹467Cr
Total disbursement

14% y-o-y img

₹648Cr
Gross loan outstanding portfolio

18% y-o-y img

₹5,365Cr
Deposit, current account

13% y-o-y img

₹122Cr
Current account EOP

169% y-o-y img

img y-o-y growth

img y-o-y de-growth

img

FIG team manages liabilities business from various Financial Institutions Group (FIG) clients in the form of current account balances, fixed deposit receipts, term money and certificate of deposits. FIG act as an interface with all banks and mutual funds and arranges exposure limits, including lines of credit.

We further collaborate with refinance institutions such as National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), Micro Units Development and Refinance Agency Bank (MUDRA) and National Housing Bank (NHB) for arranging alternative funding options as back up. The team also lends to good quality NBFCs, MFIs and HFCs within acceptable credit parameters.

98% - 100%

Collection efficiency*

*on a month-to-month basis

HIGHLIGHTS OF FY 2020-21
  • On boarded 58 new financial institutions clients to initiate deposit relationships
  • Total active FIG relationships stood at 217 on liabilities side and 37 on assets side
  • Initiated current account relationships with different NBFCs/MFIs and co-operative banks during the financial year and achieved reasonable results in developing current account balances
  • Achieved CA balance of ₹122 Crore (EOP) as on March 31, 2021
  • Engaged with top-rated NBFC/HFC/MFI space to initiate lending relationship and the loan book grew by ~18% y-o-y
  • Many initiatives on the lending front with first time lending to Housing Finance, Gold Finance, AA (Credit Rating bucket) entities
  • Recorded 98%–100% collection efficiency for the entire year on a month-to-month basis
  • Logged zero GNPA for Institutional Lending Book as on March 31, 2021
  • Leveraged relationships with cooperative banks - for fee income opportunity, by engaging in call money transactions
  • Initiated G Sec transactions in coordination with Treasury team with some new and existing clients to boost fee income
  • Diversified liabilities portfolio across geographies and different client segments substantially reduced concentration risk
  • Developed alternative funding sources such as refinance, lines of credit from banks for contingencies
  • Raised wholesale funds in difficult market situation at competitive rates
OUTLOOK

Going forward, FIG team will continue to focus on building current account (CA) balances from FIG segment clients and expand asset base by fostering new relations with higher rated spectrum of borrowers and deepen current relationships. With new product initiatives, the team aims to attract CA floats, fee income from FIG clients. The unit plans to increase its fee-based income with new products such as bank guarantee business and further enhance interbank limits, exposure limits from various mutual funds, insurance companies and cooperative banks. The team will continue to lend to NBFC/HFC/MFI clients with good portfolio quality within broad Institutional Lending policy framework. We shall also work towards building Mid-sized Corporate Banking Segment.

ZERO

GNPA for Institutional Lending Book as on March 31, 2021