27 Jun , 2021 By : Kanchan Joshi
MUMBAI : One of the key focus areas of private sector lender Federal Bank in the coming years will be India’s underbanked population through neo-banking tie-ups, chief executive Shyam Srinivasan said in the bank's annual report for FY21.
“While we broaden our horizons and accelerate progress, we will focus on reaching India’s underbanked and underserved with our neo-banking partnerships and a purpose of inclusive finance," he said.
The bank offers Pradhan Mantri Jan Dhan Yojna (PMJDY) accounts to customers with an overdraft facility mainly to weaker sections and low-income household groups. In FY20, the ministry of finance announced the continuation of comprehensive financial inclusion mission with change in focus of opening accounts from every household to every adult. So far, Federal Bank said it has opened over 621,000 accounts with an outstanding balance of Rs316.22 crore.
The bank, Srinivasan said, is constantly innovating and deploying unique differentiators to transform small businesses across the country.
“The stakes are high for small businesses in India as they are the future and make up most of the industrial fabric in our country. We are co-creating digital enablers for these businesses, to make them more sustainable and efficient. Our renewed commitment to democratize financial services using hybrid digital instruments for small businesses and deeper geographies will narrow the digital gap and deliver tangible results soon," he said.
According to him, the right digital model of reaching and enriching the underserved will surely catapult the bank as the perfect banking partner for these entities.
“Last year I had referred to the pandemic, as a Tsunami Plus, it turns out to be one for long too," he said, adding that a year back nobody knew how radically the world would change due to the pandemic and would trigger a sharp recession creating unprecedented challenges for individuals and society at large.
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