Financial Institutions & Government Banking Group (FIGB)
Deepening Presence Across the Financial Sector, Corporate, and Government Sectors
The Financial Institutions & Government Banking Group (FIGB) plays a pivotal role in our Bank, encompassing a wide range of operations that contribute to institutional lending growth and accumulate liabilities from large institutional clients. This group manages the pan-India liability businesses of various institutions, including Banks, Cooperative Banks, Regional Rural Banks, Small Finance Banks, Payment Banks, Mutual Funds, Insurance entities, Government departments, Central & State Government Public Sector Undertakings, Quasi-Government bodies, Mid & Large Corporate entities, and similar entities.
Gross loan book
Deposit, Current Account, Term Money as of March 31, 2023
Current account EOP as of March 31, 2023
Month on month collection efficiency
GNPA for institutional lending clients
Growth in FY 2022-23 over FY 2021-22
Additionally, FIGB handles wholesale lending to Micro-Finance institutions, non-banking financial companies (NBFCs), and housing finance companies (HFCs) within well-defined credit parameters. The group also significantly arranges alternate or secondary funding sources, such as refinance, inter-bank participation certificates (IBPC), securitisation, contingency lines, and other financing modes. This ensures the availability of diverse funding options to meet clients' financial needs.
As of FY 2022-23, our lending portfolio encompassed 41 clients spanning multiple industries, ensuring a diverse spread of risk. We have implemented robust credit appraisal and monitoring processes to ensure the quality of our lending exposures. As a result, our collection efficiency in this segment is nearly 100%.
Encouraged by the revival in the market environment, we introduced Trade Finance Bank Guarantee for wholesale borrowers. We successfully activated this product with a large Capital Market client, further expanding our service offerings. Additionally, we are working towards launching demand loans specifically designed to meet working capital needs. These initiatives aim to provide our clients with flexible financing options that align with their operational requirements. We also introduced fee-based trade finance products, such as bank guarantees.
Over FY 2022-23, the FIGB unit accumulated deposits of more than ₹ 7,500 Crores, and played a significant role in contributing funds to our Bank. These deposits include Fixed Deposits, Certificate of Deposits, Current Accounts, and Term Money, providing a stable and reliable funding source. Moreover, our diversified wholesale liability book has allowed us to achieve better spreads by reducing the cost of deposits and mitigating concentration and dependency risks.
Active Client Relationships
Key Achievements of FY 2022-23
- We successfully sourced substantial deposits from existing and new clients, and we have established strong relationships with several notable Government segment clients.
- We actively engaged with highly rated NBFCs, HFCs, and MFIs to establish lending relationships, resulting in a remarkable year-on-year growth of approximately 32% in our lending book.
- Our portfolio predominantly comprises AA and A-rated assets, demonstrating our commitment to maintaining a high-quality credit portfolio.
- We launched trade finance - Bank Guarantee for FIGB segment clients to boost fee income.
- We activated four mutual funds to re-initiate investment transactions with our Bank.
- We successfully raised wholesale funds at competitive rates, despite challenging market conditions.
- We raised more than ₹ 5,500 Crores through alternate funding sources to further strengthen our funding base. These funds were obtained through IBPC transactions, securitisation, term loans/overdrafts, and refinance transactions from various banks and financial institutions.
We will focus on diversifying deposits and strengthening Current Account (CA) balances from FIGB segment clients, while expanding relationships with higher-rated borrowers to grow its asset base.
To achieve this, we will aim to grow its deposit book by targeting regular segments of Banking and Financial Institutional clients, including Cooperative Banks, Regional Rural Banks, Mutual Funds, Insurance Companies, NBFCs/HFCs/MFIs, Capital and Commodity Market clients, and large financial vertical clients. Additionally, there will be a strong emphasis on developing alternate wholesale verticals such as Government banking and Mid/Large Corporate segments.
The team will introduce new product initiatives to attract CA floats and generate fee income from FIGB clients. One of the key objectives is to increase fee-based income through products like Bank Guarantees.
Furthermore, our team will actively work towards creating/enhancing interbank limits, securing increased exposure limits from various mutual funds, insurance companies, and cooperative banks. They will also prioritise seeking empanelment with different State Governments in locations where our Bank is present.
To meet our Bank's funding requirements, the team will continue to leverage alternate funding sources as needed.