Changes for page AU Small Finance Bank

Last modified by Asif Farooqui on 2021/03/17 10:15

From version < 2.3 >

edited by Asif Farooqui
on 2020/07/20 11:55

To version < 4.1 >

edited by Asif Farooqui
on 2020/07/20 12:02

< >

Change comment: There is no comment for this version

Raw
Rendered

Summary

Page properties (1 modified, 0 added, 0 removed)

Details

Page properties

Content

@@ -23,7
+23,7 @@
  The company entered India’s dynamic banking landscape in 2017, after two decades of expertise in lending to the underserved. With over 61% of its branches in rural and semi-urban areas, AU Small Finance Bank has enhanced its focus on the unbanked and underbanked customers at the bottom of the pyramid to drive financial inclusion. Retail loan assets are its mainstay comprising over 80% of its loan AUM. Besides retail, the company also offer small and mid‑corporate loan asset products.
--== Retail assets ==
++== Retail Lending ==
  AU Small Finance Bank has a fairly long, and stable track record in lending small ticket, secured, retail loans primarily to unbanked and underbanked self-employed individuals for purchasing assets that will generate income. The company's retail asset segment includes its three key focus products – Vehicle Loans, Small Secured Business Loans to MSMEs and Housing Loans. It also includes Gold Loans, Consumer Durable Loans and Personal Loans, along with overdraft (OD) on fixed deposits (FD).
@@ -179,7
+179,7 @@
  Globally, MSMEs are regarded as the engine of equitable economic development, providing large employment opportunities in less developed regions. In India too, MSMEs have been the backbone of the Indian economy. According to the Annual Report of the Ministry of MSME of FY 2018-19, India is home to ~~6.34 crore MSMEs (51% are in rural areas and more than 99% of them are categorised as micro), which cumulatively accounted for 30% of nominal GDP. These MSMEs together employ ~~11.1 crore people with micro enterprises accounting for 97% of the total employment in the MSME sector.
--= Business Overview =
++= MSMEs =
  Most of the MSMEs in India are informal in nature, which makes accessing finance a challenge for them partly due to their lack of comprehensive documentation for income proof and collaterals, perceived higher risk of the segment and higher cost of delivering services from the perspective of mainstream banks. Besides, the MSMEs’ informal set up also does not make it easy for them to avail government schemes, which are based on digital infrastructure and require beneficiaries to have some form of digital presence.