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UCB customers seek digital channels

Founded in 1959, Jaipur based Fingrowth Co-operative Bank operates across Rajasthan and Gujarat. All its 22 branches are core banking enabled and serve over 70,000 customers. Shri VeerShaiv UCB is a multistate bank from Maharashtra with its HQ in Kolhapur. It was, established in 1942 by Chatrapati Shahumaharaja.

CASA Growth

From FY 21 to FY22, deposits at Fingrowth increased from Rs4.12 billion to Rs4.81 bn, the CASA percentage increased from 47.45% to 48.38%, and per employee productivity for CASA increased from Rs151.58 mn to Rs176.42 mn. At end of March 2023, the bank has 6246 current accounts, with Rs759.9 million in deposits and 34,776 savings accounts with Rs1.56 bn. Sunil Pamecha, MD, updates: “We are looking forward to have growth of more than 10% in CASA value in the year 2023-24.”

Total deposits of Shri Veershaiv UCB were Rs11.52 billion as of 2022-23, growing 11% over the previous financial year. Total number of CASA accounts were 0.18 million in the last FY and it gave loans amounting to Rs8.17 billion. Suryakant Patil, Director and past MD, updates: “Our CASA was 20%, while CD ratio was 71% in the last FY, a growth of 8% over previous year. Our bank has achieved norms in percentage terms laid by RBI, with our priority sector lending being over 60%, and within that 50% being advances are below the Rs2.5 mn cap. Our bank’s per employee business was Rs75 million.”

Attracting New Customers

Fingrowth has been undertaking several online and branch activities to attract new SA and CA customers. It has kept minimum balance of Rs1000 for cheque facilities. It offers salary accounts with zero balance. It has introduced positive pay on its mobile app. Sunil adds: “We are providing Rupay debit card to SA customers. Cost of Getpay QR code standy is borne by the bank. Minimum balance in current account is only Rs4000, and in new branches it is further reduced to Rs2000.”

Fingrowth has not initiated third party products like insurance and mutual funds to lure new customers. However, it provides insurance products under PMSBY.

Shri Veershaiv UCB is Financially Sound and Well Managed (FSWM) entity. Patil informs: “We are working on plans to attract more younger customers. We are improving our corporate governance by strengthening administration at the head office and human resources at middle level with proper succession planning. I am sure with these measures we will be able to expand our customer base too.”

Digital, App Users’ Trends

More and more customers of Fingrowth are preferring to use digital payment facilities like fund remittance by IMPS, RTGS, NEFT, UPI, etc. Total mobile banking app users as on March, 2023 was 7360. Sunil reveals: “During 2022-23, fund remittances by our customers through mobile banking was Rs6.34 billion. This is expected to increase to Rs7 bn during 2023-24. There is an increase of 2000 in the mobile banking app users since the previous FY 2021-22. I expect our mobile banking customer base to expand to 10,000 users by end of FY 2023-24. We have observed that new generation customers, irrespective of gender, put the first condition of these facilities before opening new account. Even senior citizen customers are adopting mobile banking and digital payments facilities.”

Digital platforms of Shri Veershaiv UCB are getting popular day by day. Average monthly transactions of the bank on ATMs are 46,625, IMPS are 28,119 and UPI are 488,925. Patil reveals: “I am expecting a 10% growth for ATM as well as IMPS transactions and 50% for UPI transactions in the current FY. We are in process of changing CBS at present as planned and it is likely to be complete by September end.”

Plan To Add New Branches

No new branch was opened by Fingrowth during FY 2022-23. Sunil updates: “We have opened one branch at Udaipur (Rajasthan) in 2023-24 and the bank has further plan to open 2 new branches at Kota and Jodhpur during the current financial year.” When Shri Veershaiv UCB celebrated its Golden Jubliee in 1990-91, it had 16 branches and total deposits to the tune of Rs640 million and advances of Rs440 mn. Now, the bank has 30 branches, out of which 27 are in Maharashtra and 3 in Karnataka. Patil informs: “We plan to add 1 in Maharashtra and 2 in Karnataka in the current FY.”

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