ICICI Bank launches ‘iMobile Pay’; India’s first app that offers

ICICI Bank launches ‘iMobile Pay’; India’s first app that offers payments
and banking services for all

 

·       Customers of any bank can link their bank account, generate a UPI ID and start paying and shopping immediately

·       They also get instant access to the entire range of ICICI Bank’s banking services

·       They can transfer money to any bank account, payment app and digital wallets

 

Chennai: ICICI Bank today announced that it has transformed its state-of-the-art mobile banking app, iMobile, into an app that offers payments and banking services to customers of any bank. Called ‘iMobile Pay’, the app offers a unique combination of facilities of a payment app-- such as enabling customers to pay to any UPI (Unified Payments Interface) ID or merchants, pay bills and do online recharges among others-- with instant banking services namely savings account, investments, loans, credit cards, gift cards, travel cards and much more. The users of ‘iMobile Pay’ can also transfer money to any bank account, payment apps and digital wallets.

 

Another prominent feature of ‘iMobile Pay’ is ‘pay to contacts’ which enable users to automatically see the UPI IDs of their phone book contacts, registered on the ICICI Bank UPI ID network, of any payment app and digital wallet. This unique functionality provides users a significant convenience of inter-operability, as they no longer have to remember the UPI IDs and can easily transfer money across payments app and digital wallets.

 

A first-of-its-kind facility in India, ‘iMobile Pay’ extends the ambit of mobile banking apps which are hitherto restricted to only the customers of the respective banks. At the same time, ‘iMobile Pay’ eliminates the need to maintain multiple apps—be payments or banking—as it empowers customers to undertake all transactions. In the process, it also offers compelling reasons for users to link their multiple bank accounts to this app.

 

To get started on ‘iMobile Pay’, customers of any bank in the country can download the app, instantly link their bank accounts and generate a UPI ID (which is simply their mobile number e.g. xxxxxx1234.imb@icici) to avail all the facilities.

 

Speaking on the initiative, Mr. Anup Bagchi, Executive Director, ICICI Bank said, “ICICI Bank has always been at the forefront of introducing pioneering innovations. These innovations have played a key role in transforming the way digital India banks. In line with this rich tradition, we introduced the country’s first mobile banking app, iMobile, in 2008.

 

In the recent past, we have captured two user insights while interacting with them. One, many of them, who are not our customers, are keen to use iMobile. Two, customers are tired of using multiple apps for difference purposes and they really want to know if an app can take care of all banking and payments requirements. Armed with these insights, we are delighted to extend the ambit of our mobile banking app. Now on, customers of any bank can experience the ease, speed and safety of our mobile banking app. They can link all their bank accounts to this app. It means they can continue to bank with any bank and still use ‘iMobile Pay’ for all their digital transactions. Also, they can undertake all transactions, which they were so far doing through a gamut of payments app, through this app.

 

We believe that users will like this innovation as it offers them the unique benefit of payments and banking apps in one single place. “

 

Mr. Dilip Asbe, MD & CEO, NPCI said, “We are delighted to facilitate ICICI Bank in transforming its mobile banking app empowered with UPI and interoperable with all other UPI based payment apps. This is yet another initiative that will inspire the ecosystem to integrate interoperability on digital platforms. UPI is known to provide seamless, secure and convenient payment experience to its users and it is our belief that the large scale adoption of UPI will strengthen the ecosystem and help in achieving the common goal of less- cash society.”

 

Over the years, marquee research agencies have adjudged iMobile as one of the best banking apps in the world for its large array of services, user-friendly functionalities and intuitive design. For example, iMobile has been rated among top ranking apps for the past five consecutive years by Forrester, a reputed global research firm.

 

The key features of ‘iMobile Pay’ are:

 

·           Open for all: ‘iMobile Pay’ enables customers of all banks to download this app and experience the quick transactions backed by best-in-class security features

 

·         Acts like a payments app: It allows customers to scan a QR code of any payments app and send money to any UPI ID, bank account, self. It helps the users to transfer the money instantly to anyone free-of-cost. Further, users can pay using the app at a host of establishments including petrol pumps, grocery stores, restaurants, pharmacies, hospitals, multiplexes and much more. Further, they can transfer money to any bank account, payment app or digital wallet.

 

As an industry-first, users can simply use the ‘Pay to contact’ feature without remembering UPI IDs of friends. Using the feature, users can send or receive money to/from their phone contacts registered on any other popular payment app and digital wallet with an ICICI Bank UPI ID. The feature, relying on inter-operability, automatically displays upto three UPI IDs available for a contact to which one can pay.

 

·         Offers banking services: It also acts as a gateway for the customers to begin a new relationship with ICICI Bank. It allows them to open an ICICI Bank savings account digitally and instantaneously, apply for a credit card at zero joining fee and get instant approval for home/personal/car loans.

·         Enables users to link multiple bank accounts: Users can transact using any of these linked accounts with a single UPI ID which is generated at the time of linking the first account.

 

·         Lot more to be added soon: The list of forthcoming exciting features include users can pay utility bills, recharge mobile phones, check CIBIL score, book travel tickets, buy travel and gift cards, invest in an FD, RD, mutual funds and insurances. They will also get a feature of spends tracker, that will provide an overview of spends, with all transactions are bucketed into specific categories, to help them track their balances.

 

Here’s are the simple steps to start using the app:

 

1.      Download: Download the app, ‘iMobile Pay’, from Google Play Store, open it and set up a four-digit log-in PIN. Users also have the option of logging in using their fingerprint. Please note that it will soon be available for iOS devices.

 

2.      Link account/s: On the welcome screen, tap on ‘link account’ and enter the required details to link the savings account of any bank. Users can also link multiple bank accounts.

 

3.     Generate UPI ID: Upon successful linking of the account/s, a UPI ID will be generated, which can be used to start making transactions. The UPI ID generated will remain the same for all the linked bank accounts. Users can simply select the account of their choice, while making a transaction.

 

To know more on the facility, visit: https://www.icicibank.com/mobile-banking/imobile-pay.page ; To download the app, visit Google Play Store.

HDFC AMC Launches HDFC Dividend Yield Fund

         HDFC AMC Launches HDFC Dividend Yield Fund

 

-       An open ended equity scheme predominantly investing in dividend yielding stocks

 

HDFC AMC launches HDFC Dividend Yield Fund, an open ended equity fund that aims to invest predominantly in stocks of dividend yielding companies with a preference for companies that have consistent track record of paying dividends at the time of investment and companies having dividend yield higher than Nifty 50 index. The Fund will be market cap and sector agnostic. Dividend yield is a good valuation indicator and companies that have high dividend yield represent good cash flow in business and management commitment towards shareholders. Also, such companies have a higher Return on Equity (ROE). Dividend yield is a financial ratio that shows how much a company pays out in dividends/buyback each year relative to its stock price.

 

Following are the characteristics of typical dividend paying companies:

o    Mature and less volatile businesses

o    Capital intensive businesses like utilities, mining, etc. and annuity cash flow type businesses (Example: A tower company)

o    Healthy Cash Flow generating companies

o    Management Commitment towards shareholders and supports higher ROE

 

Why Invest Now?

We believe it is a good time to consider this fund due to following reasons:

o    Low Interest Rates make high dividend yield stocks attractive

o    Current polarized valuations make high dividend yielding stocks attractive and

o    Due to change in taxation, many companies are opting for buy back which can be a good way to reward shareholders and improve the valuations of these companies

 

NIFTY Dividend Opportunities 50 TRI (the benchmark) has delivered a CAGR of 9.70% for the period 1^st Oct’07 to 30^th Oct 2020. Further, over the last 13 years, NIFTY Dividend Opportunities 50 TRI has outperformed NIFTY 50 TRI by a CAGR of ~2%. (Source: MFI)

 

Portfolio Construct

The Fund Manager will look to build a diversified portfolio of companies present across sectors and market cap. Aim will be to invest in companies:

o    with Stable business models and stable cash flows

o    where profits are expected to grow which will lead to increase in dividends - Opportunities across sectors

o    where companies are expected to do a Buy back

o    Companies trading at attractive dividend yields - (Dividend yield is 1x to 2x G-sec yields)

 

Fund Suitability - The Fund is suitable for investors:

o    Looking for a diversified portfolio of dividend yielding stocks with an objective to provide capital appreciation over long term

o    Aiming for investment in equities with fair amount of stability and relatively lower risk (than other equity funds) over medium to long term

o    Who aim to take advantage of tax arbitrage via mutual fund route compared to direct investing in dividend yielding stocks

o    Who have an investment horizon of 3 years or more

Axis Mutual Fund launches

 Axis Mutual Fund launches ‘Axis Special Situations Fund’

 

The Indian equity market has witnessed some of the most dramatic swings since the beginning of the pandemic, hitting unprecedented highs and lows. The pandemic has also been notable for how it has forced all of us to embrace significant change in our daily lives and caused innovation from companies responding to the stay at home/ work from home economy. As business models reconfigure themselves, there is also an increasing acceptance of technology and the transformative role that it is playing across multiple sectors.

The changes wrought by the pandemic have only accelerated the disruptive trends that have been around us both in India and globally and we fully expect these trends to sustain in the post pandemic economy as well. A combination of government push, global investments and domestic ingenuity and focus on low cost, wide adoption models have already seen us coming up with unique transformative solutions in India such as Aaadhar, UPI etc.

So while disruption and the resulting innovation itself is not new and we have seen multiple waves of it through history - right from the industrial revolution – what is different this time is the pace of change and the presence of well-funded disruptors in every sector that are up-ending the traditional ways of doing business.

 

What does this mean for investors?

At one glance all this change around us can seem unsettling, however there is also a significant opportunity for us as investors to benefit from these changes. Financial markets are usually slow to recognize disruptive innovation and the impact of unanticipated change is often overlooked by investors. This can lead to a significant gap between market expectations and the actual growth potential of the disruptive change.

 

Axis Special Situations Fund is a unique attempt by Axis AMC to create a dedicated equity fund that focuses and invests in these opportunities both across India and global markets.

 

Axis Special Situations Fund

Axis AMC has been at the forefront of product innovation and creating a robust investment process that has the potential to deliver long term performance for its investors. While Axis has a number of large successful traditional equity strategies, good quality thematic funds can complement these from an investor’s perspective.

 

Thematic funds target specific themes or segments of the market and allow investors greater ability to access those themes (such as sustainability or disruption) that they strongly believe in or which can complement their traditional equity allocations.

 

Axis AMC is thus excited to announce the launch of the Axis Special Situations Fund, an open ended equity scheme that follows a special situations theme focusing on investing in disruptive growth opportunities. The fund will allow investors to capture opportunities across the entire disruption value chain. Further the fund will be investing across both domestic and global markets as well as across the market cap spectrum – thus allowing the investors to participate in relevant opportunities in any of the segments of the market. Overseas investments will be advised by Schroder* (which is around 25% shareholder in Axis AMC).

 

Salient Features of Axis Special Situations Fund

·         The fund offers Indian investors an opportunity to invest in stocks that are participating in or enabling disruption

·         Its multi-sector and multi-cap asset allocation strategy along with exposure to global equities ensures that it is beneficiary to not only the disruptor but also companies which are adapter or enablers of disruption

·         Overseas investments will be advised by Schroder Investment Management Limited based on their disruption philosophy

Mr. Chandresh Kumar Nigam, MD & CEO, Axis AMC said, ‘Axis AMC has always tried to bring innovative new fund ideas for our investors that we believe can help in long term wealth generation. Our product development is backed by our unique and time tested philosophy of responsible investing with an unflinching focus on quality. The introduction of the Axis Special Situations Fund also continues our journey towards creating an industry leading asset management platform that can service needs for all our investors. As the world transforms around us led by ever accelerating technological change and innovation, investors need to be able to allocate to and benefit from this theme – whether in Indian or global markets’.

 

The new fund offers (NFO) opens for subscription from December 4^th to 18^th 2020.

Investors (re)imagining India data center market as

Investors (re)imagining India data center market as capacity 

expected to triple by 2025: JLL

Data center market presents an investment opportunity of USD 4.9 bn during next five and half years ending 2025

         

• India’s 375 Megawatt (MW)* data center industry kept digital economy working during the lockdown
• 14% rise in data consumption during the lockdown period starting last week of March 2020
• 9.3 mn. sq.ft. additional space needed during 2020-25 for new data centers
• 43% of utilised colocation capacity occupied by Public cloud; Mumbai leads with largest share

Note: Megawatt (MW)*: indicates IT power load

India’s data center capacity is expected to grow from 375 MW in H1 2020 to 1,078 MW by 2025, presenting a USD 4.9 billion investment opportunity. According to JLL’s H1 2020 ‘re(Imagine) Data Centers Running India’s digital economy’ report, the impact of data protection laws, increased shift from captive to colocation (colo) data canters and implementation of new technologies like 5G, edge computing and the internet of things (IoT) will drive sustained investor demand for this asset class over the next five years.

“India’s data center market will outperform over the next five years, supported by a combination of growing digital economy, increased investor interest and stable long-term returns. Growth in the sector will be further powered by colocation sites which, via, lower upfront costs, heightened data security, uninterrupted services and scalability will, further, influence investors to reimagine the potential of India’s data canter space. The 703 MW expected capacity additions is translating to 

9.3 million sq. ft. of space, which will open up greenfield investments for real estate developers and investors to fuel the future development of the sector,” said Ramesh Nair, CEO & Country Head, India, JLL.

India’s data canter industry has provided immense boost to the digital economy during H1 2020. From an average 270 petabytes (PB) to 308 PB during week of March 22nd, a 14% rise in daily data consumption was observed during the lockdown.

There was a 12% rise in data consumption in Andhra Pradesh and Bihar, while there was a 7% increase in data consumption in Maharashtra which was the highest amongst other states. In terms of total additional supply, there has been an increase of 8% in H1 2020, taking India’s total colocation capacity to 375 MW. H1 2020 also witnessed supply addition of 27 MW, 56% of the total addition seen in 2019 (48 MW). Mumbai continued its lead with addition of 19 MW, followed by Bengaluru at 5 MW and Delhi NCR at 3 MW.

“Powered by the transition to work from home arrangements during lockdown, the country’s data center industry became the backbone of the digital economy and ensured a level of business continuity and sustained large portions of the country’s education system. Given shifts in the economy, we will continue to see data consumption increase manifold for the foreseeable future,” said Rachit Mohan, India Head, Data Center Advisory, JLL.

The dependence of several industries on digital infrastructure has partially helped mitigate the impact of the lockdown with IT/ITeS, Banking and Financial Services, e-commerce, capital markets, social media and education remained operational.

“Mumbai is expected to see highest capacity addition as it continues to be the preferred choice for large cloud players because of its infrastructure advantage. Chennai is also proving an attractive destination due to its advantages of submarine cable landing stations and low development costs.” says Dr Samantak Das, Chief Economist and Head of Research & REIS, JLL India

India’s data center industry is expected to accelerate its transition, says JLL, with operators, locations and technology adapts to the reimagine digital world.

Lakshmi Vilas Bank posts net profit of Rs 92 crs in the

Major Performance Highlights

·         Bank  recorded  operating Profit of ` 70.32 crore during the Q4 20 as against the Operating Loss of ` 19.85 crore during the Q3-20

·         Bank  earned the Net Profit of ` 92.86 crore .during the Q4 20 as against the Net  Loss of ` 334.48  crore during the Q3-20

·         Total Business mix stood at `. 38116 crore

·         CASA increased to 26.63 % of Total Deposit as on 31.3.2020 as against 25.67 % as on 31.3.2019. and 25.88% as on 31^st Dec 2019

·         Bulk Term Deposit was around 4.86% of Total Deposits.

·         Liquidity Coverage Ratio 273.21%

LVB posts net profit of Rs 92 crs in the fourth quarter ending March 31; ontrack with investors for capital raising

Major Performance Highlights ü  Bank  recorded  operating Profit of ` 70.32 crore during the Q4 20 as against the Operating Loss of ` 19.85 crore during the Q3-20 ü  Bank  earned the Net Profit of ` 92.86 crore during the Q4 20 as against the Net  Loss of ` 334.48  crore during the Q3-20 ü  Total Business mix stood at `. 38116 crore ü   CASA increased to 26.63 % of Total Deposit as on 31.3.2020 as against 25.67 % as on 31.3.2019. and 25.88% as on 31st Dec 2019 ü  Bulk Term Deposit was around 4.86% of Total Deposits. ü  Liquidity Coverage Ratio 273.21% ü  Cost Income ratio 71.10% Vs 110.38% ü  PCR 71.25%.

1.  Liquidity position 

The Bank’s liquidity position is comfortable with LCR of about 273.21 % against minimum 100 % required by RBI. Bank also does not have any Asset-Liability mismatch and is successfully fulfilling its commitments to deposit-holders, Bond holders account-holders and creditors.

2. Capital raise

Ever since its start in 1926, bank and its management have industriously worked, to uphold the interests of its depositors and its minority shareholders, as supreme and foremost. In the last 5 years, the Bank has raised equity capital of Rs 2002 crores in various forms as detailed below

Fiscal year ended	Method	Number of shares issued		Amount, INR crores
Aug-14, FY2015	Rights issue to shareholders	8,12,60,919		406.0
Jan-17, FY2017	Qualified institutional placement	1,19,85,138		167.8
Jan-18, FY2018	Rights issue to shareholders	6,39,87,006		780.6
Mar-19, FY2019	Qualified institutional placement	6,38,31,945		459.6
May-19, FY2020	Preferential allotment	1,68,00,000		188.2
Total		23,78,65,008		2,002.2

We are glad to inform you that, despite the current pandemic, our relentless pursuance, resulted in the bank receiving a non-binding letter of intent dated 12-June-2020 “LOI” from Clix Group for amalgamation of Clix Capital Services Private Limited and its subsidiary into the bank. The LOI was executed in board meeting of the bank held on 15^th June2020 and was informed to RBI  also.

As per the LOI, the proposed amalgamation of Clix Capital Service Pvt Ltd and Clix Finance India Pvt Ltd into the bank, is subject to completion of mutual due-diligence in exclusive window of 45 days and is subject to regulatory and other customary approvals. After the 45 days window, the binding commercial terms will be finalized and a regular proposal will be submitted for consideration of RBI. Currently, the due diligence process is underway. Upon amalgamation the entire shareholders’ fund of Clix Capital of approximately INR 1,900 crores and total assets of approximately INR 4,600 crores, will get amalgamated into bank.  Therefore, as per current quick estimates of the advisors, after amalgamation of Clix Capital, the CET-1 of bank might reach to reasonable threshold level stipulated under extant regulatory norms based on the present level of assets and capital.

In addition to the proposal from Clix Group, the Bank’s advisors, we look for few large marquee long term investors as well in mutual consutation .  We will share information on the developments in public domain as and when they materialise.

3. Steps taken to improve profitability

We are glad to inform you that, we have successfully embarked upon this efficiency improvement plan and are on track to achieve the targeted efficiency in first full year of impact of steps that are undertaken. The key steps already implemented are:

i)                    Deposit cost – reduce interest rate on deposits to be comparable with peer banks and this should substantially reduce cost of deposits. Our treasury’s nimbleness and hands on approach, enabled us to successfully reduce overall,  cost of funds from 5.91 % during Mar 19 to 5.51 % for the year ended 31-Mar-20. The reduction in cost of funds has primarily been due to –

a.       Increase in share of CASA funds, which increased from 25.67 % of total deposit as on 31-Mar-19 to 26.63 % as on 31-Mar-20.

b.       Reduction in Bulk Deposit by around `  2563 crore from the level of ` 3606 crore as on 31^st March 2019 to around `  1043 crore as on 31^st March 2020.

c.       Rationalization of fixed deposit rates across maturities.

ii)                  Establishment costs –

We continue to believe in long term relationships with all stakeholders, especially, our customers, investors and employees. Bank would like to reward its employees  in acknowledgement to higher productivity and better performance in business generation, recovery of bad loans and higher fee income. We have taken several steps in this direction to improve efficiency/business and profit per employee, such as –

a.       we have started retraining, sections of employees, to do multiple roles to rationalize ‘employee per branch’,

b.       our ‘VRS plan received a good response. 69 eligible employees opted for Voluntary Retirement Scheme.

c.       besides, VRS and re-training employees, about 350 employees chose to pursue their careers otherwise.

d.       Bank has also withdrawn the mandate given to IBA to negotiate wage revision on its behalf for both its officers and workmen staff.

iii)                 Reduce other operating costs

a.       During the current fiscal year, a number of branches were exchanged with either new location or reduced in floor space and many branches achieved revision in rental agreement. In parallel, to continuing cost optimization, the bank has also refocused branches along lines of use, viz., liability branch, assets branch, mixed use branch.

b.       We have enhanced security of ATM sites and have simultaneously achieved performance efficiency, by implementing e- surveillance on ATM or optimizing in watchman count for on-site ATMs and reducing opening hours of low hit ATMs in the late evenings.

c.       AMC costs are also being renegotiated for reduction.

iv)                 Improve fee income

a.       Bank is moving all its ATMs to opex model whereby they will be owned and operated by identified vendors. The vendors have agreed to specified uptime targets which helps to improve the fee income therefrom

b.       Bank is aggressively pushing digital products for adoption by its customers and with lockdown continuing, the use of such products is increasing to yield higher our fee income.

c.       In the conducive market conditions, Bank is expects at trading profit through its treasury to improve its profitability.

4. Operations during COVID

Bank continues to be responsible to society and ensures safety and health of community. Under current unprecedented pandemic situation, we carefully, sanitization and maintain hygienic social distance standards at all our branches, offices and ATMs. We also distributed face mask to our visiting customers free-of cost.

Bank continued to exhibit operational resilience during the lockdown period. 99% of branches remained operational, 90% ATMs remained operational and digital channel had an uptime of more than 99.5%, during the lock down period.

Performance Highlights:

Lakshmi Vilas Bank (LVB), a south-based private sector Bank, has declared its results for the Final Quarter ended 31.3.2020.  

± Total Business of the bank was `  38,116. crore as of  31/03/2020 as against `  51.235. crore as on 31^st March 2019.

± CASA as a percentage to total deposits stood higher at 26.63 % as on 31/3/2020 as against 25.67% as on 31.3.2019.

± Gross Advances stood at ` 16,673 Crore as of  31/03/2020  as against `  21,956 crore as on 31/3/2019, Y-O-Y decline of 24.06% , mainly due to hiving-off some low yielding bulk advances and conservative approach of selective  security based  low risk fresh  lending..

± The Bulk Deposits were reduced by around `  2563 crore  to `  1043 crore from the level of `  3606 crore as on 31^st March 2019.

± Operating Profit of the bank stood at  ` 70.32 crore  for the quarter ended 31<sup>st</sup> Mar 2020  as against the operating loss of  `.19.85 crore for the quarter ended 31/12/2019 and  Operating Loss of ` 21.18 crore for the quarter ended 31/3/2019.

± Cost to Income ratio for the Q4 FY20 stood to 71.10 % as against the same in Q3 FY20 stood to 110.38% (sequentially).  The Cost to Income Ratio for the Q4 of FY 2019 stood at 110.72 %. (Y-o-Y)

± Loss  before tax provision was at `.233.15 crore, for the quarter ended 31/3/2020  as against the Loss of ` 334.48 for the quarter ended 31/12/2019 and the Net loss  Before Tax was `  499.96 crore for the QE  ended 31/3/2019 (Y-o-Y).

± Net Profit after Tax is `  92.86 Crore for the quarter ended March 20 as against Net loss of `  334 48 crore in the previous quarter ended Dec 2019.

± Net Interest Margin (NIM) of the bank stood at 1.56 % for the year ended 31^st March 2020 as against 1.65 % for the year ended 31^st March 2019.

Capital Adequacy:

Net Worth  of the Bank ( before DTA)  stands at ` 996.14 crore.The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at  1.12%  as at 31^st March 2020  as against  3.46%   as at  31/12/2019, and  7.72 % as at 31/3/2019.

NPA

The Gross NPA stood 25.39 % as on 31/3/2020 as against The Gross NPA stood 23.27 % as on 30-Dec 2019 sequentially. The Gross NPA stood 15.30% as on 31/03/2019 

Net NPA stood at 10.04 %, as on 31/3/2020 as against the Net NPA of 9.81 %, as on 30-Dec 2019.

Net NPA of 7.49 %, as on 31-March 2019.

The provision coverage ratio increased to 71.25 % (68.70% as on 30-Dec 2019 and 62.08 % as on 31-March 2019.  PCR is higher than the minimum of 70% prescribed under PCA

Other Developments:

Bank has bagged an award as “Best Performing Private Bank Award” for performance under “ Atal Pension Yojana” from Pension Fund Regulatory and Development Authority. The Pension Fund Regulatory and Development Authority (PFRDA), a statutory body, is the pension regulator of India which was established by Government of India and was authorized by Ministry of Finance, Department of Financial Services.

Our Bank has been featured among Top 10 Banks in India on digital transactions by National Payment Corporation of India and MEIT based on the increasing Debit and Digital transactions surpassing 100% Achievements on budgets set by NPCI & MEIT.

RBI on March 27 had permitted all lending institutions to allow a three-month moratorium relief to their borrowers from March 1, 2020 up to May 31, 2020 to help ease any debt servicing for borrowers impacted due to COVID-19. This has further been extended by another three months up to August 31, 2020.

As per the extant RBI guidelines, We continue to concentrate in lending like Gold Loans, Deposit loans which carry nil risk weights. Bank also sanctioned the Gold Loan of around Rs 190 Crore during the quarter and the Bank also preapproved the Guarantee backed loan ( Lakshmi Guaranteed Emergency Credit Line) to the existing customers around Rs 662 crore and sanctioned Rs 143 crore .

Steps Taken by the Bank and future Plan:-

1.      Bank had already shifted its  lending focus from Corporates to MRC (MSME, Rural, Commerial) and Retail Segments. Hence, the restriction for lending to Corporates due to PCA did not have any impact on us.

2.      With improvement in technology , Bank has started extensive usage of digital technologies like Digital Customer on boarding and Digital Lending  for servicing its customers and business development .The Bank has full-fledged multi-channel digital banking services offered via internet, mobile and other mean of new age technologies comparable to best in industry. Hence, the Bank did not felt the need for opening new branches during the year.

3.      Bank had taken various measures including the centralization of the payment of expenses at Head office to monitor and rationalize the cost wherever feasible and taken simultaneous steps to boost other income. We have rationalized the staff in administrative office or redeployed them in branches to market to new customers and engage   in recovery measures. We expect that these measures will result reduction in our Cost to Income Ratio.

Network

As on 31/3/2020, Bank has extensive bouquet of digital products of 566 branches, 5 Extension Counters, 918 ATMs in 19 states and 1 union territory, the Bank offers various bouquets of products and services. The Bank is committed to build a sustainable business over the long term and upholding high standards of customer service - Life Smiles Where LVB Serves. Tamil Nadu continues to be the dominant contributor of business for the Bank.

The Board of Directors of The Lakshmi Vilas Bank Limited approved the financial results for the Quarter ended 31/3/2020 at their meeting held in Chennai   on 10^th July 2020.