Banking Frontiers – July 2019

The bank incurred a loss of revenue to
the extent of `230 million on account of
abolition of octroi.

UPI, CHIP BASED CARDS
The bank has been providing ATM related
services as well as SMS services to its
members free of cost. It has introduced
balance inquiry through missed call.
Says Sawant: “We have issued
92,510 ATM cards to our members/
customers. We have upgraded our mobile
banking application provided by C-edge
Technologies. Recently we have launched
UPI through which our customers can
create digital wallets of any other payment
solution provider like Google Pay, Paytm,
etc. We have also provided chip-based cards
to all our customers.”
Since the customer base is restricted
to salaried individuals only, deployment of
POS machines is not viable for the bank.

TECHNOLOGY VENDORS
The bank has implemented CBS on an
ASP model using the system of C-edge
Technologies, which is also taking care of
the ATM connectivity, ATM switch and
ATM cards. The IT team at the bank is
headed by a system analyst (in the rank
of an assistant general manager), who
reports to DGM (Computers). There is a
manager-IT and there are 4 IT assistant
managers and 2 clerical staff.
“There are approximately 125

transactions per ATM per day at our ATMs.

The total transactions done on our ATMs

in 2018-19 are 455,615 and the overall

transactions by our customers through

all other ATMs are 1,653,281. We have

deployed NCR ATMs,” says Sawant.

The bank also makes use of services

of vendors such as P2B Ace Solution for

the HR module and Loan Origination

module, V-Soft Technologies for CTS,

TJSB Sahakari Bank for AML software

and Brinks India for cash collection and

distribution to branches.

RISE IN NPA

The bank’s gross NPAs have increased to

`628.8 million in 2018-19 from `456.6

million in the previous financial year. The

gross NPA increased to 2.61% from 1.95%.

Sawant says since many of the borrowers

of the bank are class IV employees and on

account of job hazards, they are exposed

to various ailments and diseases, they

are irregular in duties. This affects their

repayments of loans. “This is a major concern

for us and due to this our recoveries are

affected. Out of total 1800 specific accounts,

almost 75-80% accounts are in NPAs.”

TECH PLANS

Sawant says the bank may not grow

horizontally by expanding branches and

ATM centers, but it is planning for effective

utilization of available infrastructure and

resources. “We will be extending our mobile

banking base to all tech savvy customers,

adding new features in the application

such as cheque book request, stop payment,

PIN change, etc. We will have a more

efficient loan origination system, biometric

attendance system for bank employees and

kiosks for passbook printing and other

enquiries,” adds Sawant.

[email protected]

The bank launched the UPI facility recently

Summary: There are

key opportunities that

are yet to be unlocked;

a hybrid solution is

needed to unlock the

same.

Unlocking Opportunities in

Microfinance

Dr Bhagwan

Chowdhry

Research Professor,

ULCA Anderson

School

Summary:

Commercial

perspective is the core

aspect in data security

regulation

Will data be cause of next

World War

R. Gandhi

Former Dy Governor,

RBI

Summary: The

insurance sector

around the world is

transforming with the

acceptance of AI and

other cognitive sciences.

Innovation-tech powers

insurance biz

Ravi Seshadri

Head, BD, Bharti Axa

General Insurance