The Financial Institutions Group (FIG) has a broad scope of operations within our Bank, contributing to both, growth in institutional lending and deposit accumulation. It acquires and manages the pan-India liability businesses across various financial institutions.
It also handles wholesale lending to the microfinance institutions, non-banking financial companies (NBFCs) and housing finance companies (HFCs) within acceptable credit parameters, and arranges alternate or secondary sources of funding by way of refinance, inter-bank participation certificates (IBPC), securitisation, contingency lines, and other modes.
Quick facts
Total Disbursement 53% y-o-y Increase
Gross Loan Outstanding Portfolio, 32% y-o-y Increase
Month-to-month Collection Efficiency*
Current Account EOP 1% y-o-y Increase
Deposit, Current Account and Term Money, 40% y-o-y Increase
GNPA for Institutional Lending Clients
Over FY 2021-22, the FIG unit accumulated deposits of ₹7,617 Crores, covering fixed deposits, certificate of deposits, current accounts and term money and served as a major contributor of funds for the Bank. Our diversified wholesale liability book helped us to recover better spreads by reducing the cost of deposits, concentration risk and dependency risk substantially.
Retaining its conservative approach this year, the Bank has grown its institutional lending book with well-rated entities and disbursed ₹715 Crores over this fiscal, closing the book at ₹855 Crores, with a 32% y-o-y growth. The lending portfolio consists of 37 clients with a multi-industry spread. The Bank has developed robust credit appraisal and monitoring processes for its wholesale lending exposures. The collection efficiency of the segment is close to 100%. Encouraged by revival in the market environment, the FIG team launched collection and OD accounts for wholesale borrowers, and is working to launch loans for working capital needs, and feebased trade finance products like bank guarantees in FY 2022-23.
Highlights of FY 2021-22
On-boarded 38 financial institutions on the liabilities side
Achieved CA balance of ₹96 Crores (EOP) as on March 31, 2022
Engaged with toprated NBFC/HFC/MFI space to initiate lending relationship. The book grew by ~32% y-o-y
First-time lending to Housing Finance, Gold Finance, and AA (Credit Rating bucket) entities
For boosting fee incomes: Leveraged relationships with cooperative banks and participated call money transactions; initiated G-Sec transactions in coordination with the treasury team
Raised wholesale funds in difficult market situation at competitive rates
FIG team concluded IBPC Transaction of ₹425 Crores, refinance facility of ₹300 Crores and two securitisation transactions aggregating to ₹245 Crores in Q4 of FY 2021-22
Financial Institutions Group will continue to play its role in sourcing adequate wholesale liabilities (Deposits/Current Accounts)from Banks, Cooperative Banks, Mutual Funds, Insurance Companies, NBFCs and all types of financial institutions and play its balancing role in overall funding requirement of the bank. This FY, FIG Team will be working extensively on Government business to develop a key segment of wholesale vertical. The group will continue to maintain and enhance adequate exposure limits from Banks, Mutual Funds and Development Institutions like NABARD/SIDBI/NHB. Alternate sources of funding would keep on augmenting overall funding needs. On Asset side, we will keep on engaging with entities having acceptable credit and grow the book at moderate level.
Parag Srivastava
Business Head, Financial Institutions Group
Active Client Relationships
Liabilities
Assets
Outlook
The FIG unit will continue to focus on diversifying deposits, building current account (CA) balances from FIG segment clients, and growing relations with higher rated spectrum of borrowers to expand its asset base. Through new product initiatives, the team aims to attract CA floats and fee incomes from FIG clients.
The unit also expects to increase its fee based income through new products like bank guarantees. The FIG unit is looking forward for enhanced interbank limits, increased exposure limits from various mutual funds, insurance companies, cooperative banks and Regional Rural Banks.
