We provide Vehicle Loans to firsttime ‘formal financial channel’ borrowers purchasing used commercial vehicles, with significant experience in hyperlocal logistics as well as small fleet operators. Our vehicle loan customers typically have limited access to bank loans for commercial vehicle financing and mostly have limited or no credit history. Alternatively, to fit into this category, they need to own assets such as a house or property or vehicle.

These customers start their journey as a small road transporter by taking a loan to buy a used commercial vehicle, mostly self-driven. Over the years, as this small transport service grows, they tend to buy a few more used commercial vehicles and hire help to drive those vehicles. This is when the customer graduates into a small fleet owner. As they grow more confident and steady their cash flows, they look at replacing their used vehicles with new ones. New Commercial Vehicle Loans help these customers purchase vehicles from India’s leading manufacturers. We started New Vehicle Finance in FY19, and have grown to 23,153 customers.

In the new vehicle finance business, a strong dealer network is key to our business. We run this business through our existing 200-300 Banking Outlets that source business through dealer network of vehicle manufacturers such as Tata Motors, Mahindra and Mahindra, etc. In our second year, we have become a preferred financier with vehicle manufacturers and enjoy a pan-India market share.

Our endeavour has been to partner with the dealers and help them grow by generating visibility through us by connecting with our existing customer base. Such a symbiotic relationship has helped us achieve profitable growth. Turnaround time (TAT) for sanctioning loans is critical to get business through dealers. To fast track this process, we have implemented a real-time SMS-based credit screening to provide an immediate feedback on loan eligibility. We are also revamping our Loan Origination and Management systems to help reduce TAT. Our business is largely insulated from macro-economic headwinds as our focus is on smaller tonnage vehicles and largely small ticket used vehicle customers. Further, our management’s deep understanding of vehicle finance business has enabled us to take a cautious approach to growth in select tonnages.

2019-20 Highlights

Customer images used for representation purpose only

ATS represents average ticket size

Our Microfinance customers comprise farmers, dairy farmers, microentrepreneurs like vegetablevendors, fruit and flower sellers, and others. We have built a holistic relationship with our microfinance customers and have become a key enabler to help them reach their aspirations. We also target our microfinance business towards microentrepreneurial women with limited access to formal financing sources. We provide group loans to women customers to encourage them to start their small businesses or other income generating activities. The loans are offered for a tenure of two years, at interest rates between 23% and 24% per annum. Unsecured with no collateral, the loans are however secured through a peer-guarantee model to promote credit discipline through mutual support within the group, prudent financial conduct among the group, and prompt repayment of their loans. Repayments are collected in cash at centre meetings. Passbooks are issued to customers, and in order to minimise fraudulent activities, we use pre-printed stickers for each microfinance loan account evidencing cash receipt.

We are focused on making them our inclusive banking customers. We offer savings accounts to these customers to facilitate direct benefit transfers under various government schemes. We also provide customers the option of starting a recurring deposit while availing loan. The monthly instalments are collected in cash during the regular centre meetings, making it very convenient for them to save.

2019-20 Highlights

Customer images used for representation purpose only

ATS represents average ticket size

Our MSE products aim at facilitating the expansion and modernisation of businesses, including acquiring fixed assets and meeting working capital needs. Previously provided as part of our Small Business Loans product segment, MSE finance has subsequently differentiated their offerings based on the profile of the customer, with a strategic focus on diversifying our customer base. We target enterprises engaged in business activities that maintain formal records for credit evaluation, primarily in urban and semi-urban areas. Customers of this segment are typically involved in manufacturing and trading activities.

We offer working capital loans in the form of:

• Fund-based facilities, including cash credit limits, overdraft limits
• Non-fund-based facilities like bank guarantees and letters of credit

We also offer Term Loans for specific business purposes. These advances are predominantly secured by primary and collateral security in the form of stock, book debts, machinery, commercial or industrial premises and residential properties of promoters/proprietors. Our wide range of products and customised services include overdraft facility and corporate internet banking to suit the specific requirements of our MSE customers.

We are focusing on serving the formal sector enterprises with an annual turnover of `10-15 crores. We also offer Term Loans for specific business purposes. These advances are predominantly secured by primary and collateral security in the form of stock, book debts, machinery, commercial or industrial premises and residential properties of promoters/proprietors.

Our wide range of products and customised services include overdraft facility and corporate internet banking to suit the specific requirements of our MSE customers. We implement technology to deliver superior banking services and are focused on building long-term relationships. We are leveraging our technology platform—virtual relationship manager—for funds and portfolio management

2019-20 Highlights

Customer images used for representation purpose only

ATS represents average ticket size

We provide Term Loans to NBFCs, which are further lent to retail customers in the form of microfinance, vehicle finance, housing finance and similar sectors, and to certain corporates. These entities need to fulfil the requirement of a BBB rating from a recognised credit rating agency. The average ticket size of these loans ranges from `15 crores to `50 crores.

During FY20, this business increased in size. We have a strong understanding of the NBFC segment, which is small, but wellcapitalised. We had the window of opportunity when a large NBFC faced a liquidity crunch after mutual funds stopped refinancing the loans of NBFCs immediately after the IL&FS crisis. There was a ready market and we have stepped in as a bank should do. We see this segment to deliver high profitability due to its high Return on Assets (ROA) as well as the strong relationship we have with businesses similar to ours.

2019-20 Highlights

Customer images used for representation purpose only

ATS represents average ticket size

2019-20 Highlights

Current Account

Our current account options provide ease and convenience to our customers by enabling them to manage their business transactions with higher daily transaction limits and access to funds at a wide network of Banking Outlets, ATMs and via net banking, mobile applications and SMS banking channels.

• Wings Current Account
• Business Account
• Business Prime Current Account
• Advance Current Account
• Trade-In Current Account
• My Business Account

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Term Deposits

As on March 31, 2020, over 5,20,000 customers maintain term deposits with us.

• Fixed Deposits
• Recurring Deposits
• Selfe FD
• Institutional Products

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Customers enjoy a one-stop shop for all their investment and insurance needs with us.

We focus on “savers” who are predominantly conservative and prefer to park their wealth in traditional instruments like Term Deposits, Mutual Funds and Insurance schemes.

We enjoy an open architecture where we distribute schemes from multiple asset management companies and insurance companies. Through the distribution of these products, we also ensure to service the needs of our customers.

Over the years with the help of technology, we have been able to provide some of these products digitally and empower self-services by customers through our internet and mobile banking platforms.

We also actively cross-sell insurance to our borrowers as a protection to the family in case of any unforeseen circumstances.

Insurance

Our insurance products cover a wide spectrum of customer requirements such as property insurance for housing, endowment policy, term insurance, unit linked plans, motor insurance and personal accident cover policies for customers across segments. We maintain bancassurance relationships with life insurance companies, general insurance companies and health insurance companies and distribute their insurance products. Under these agreements, we generate income in the form of commission and in the form of new business premium for such insurance companies.

FASTag

Conceived with a vision to reduce vehicular traffic at toll plazas, FASTag is a reloadable tag that enables automatic deduction of toll charges and allows vehicles to pass through the toll plaza without stopping for cash transaction. Linked to a customer account, we issue a card for use at toll plazas. We actively engage with car dealers for issuing these cards.

Mutual Funds

Our customers prefer making prudent investment decisions and mutual funds are their preferred choice. We are empanelled with asset management companies to distribute their mutual fund products through our branch network. In return, we receive commissions from the asset management companies for selling their products to our customers.

2019-20 Highlights