MOSL: FINANCIALS DEEP DIVE-Business insights from experts

​FINANCIALS DEEP DIVE: Business insights from experts

We hosted the third edition of Financials Deep Dive (4th day of AGIC), with the participation of experts from varied fields: Retail Banking (Yes Bank), Real Estate and Corporate Financing (Piramal Finance), Vehicle Financing (Hinduja Leyland Finance), Restructuring & Turnaround Services (E&Y), Credit Bureau (CRIF High Mark), and Digital Payments (NPCI). Most speakers emphasized the niche areas their businesses operate in and how their businesses/companies have scaled up through constant product innovation and risk management. We present our key takeaways.

Yes Bank presented its strategy of evolving into a granular retail bank. The session revolved around its systems, processes, management team, customer mining strategies and product offerings. Its target CASA ratio of 40%+ is likely to be achieved two years earlier than stated (by CY18 v/s CY20; 36% now). The bank is confident of sharply improving profitability in the retail business, with (a) operating leverage playing out, (b) addition of branch banking assets, (c) levers available to cut interest cost on savings deposits, and (d) surge in core retail fees (expected to be 35% of overall fees v/s 27% now).

Piramal Finance presented insights on how it has positioned itself as a contender in the crowded real estate finance market. Strong corporate governance, ability to provide innovative solutions for borrowers, continuous new product and line-of-business addition, and value addition (based on its in-house expertise) are its key pillars for strong growth and healthy asset quality. It also plans to tap the SME and emerging corporate banking space to emerge as a strong diversified financial services company. It has received the housing finance license in September 2017 and the management is optimistic about this business.