Most banks and non-banking financial companies (NBFCs) have reported good loan growth for the September quarter. IDFC First Bank is one of them. Advances have grown by 9.75 per cent year-on-year (YoY) and 3 per cent quarter-on-quarter (QoQ) but IDFC First Bank is the only bank perhaps which has reported a fall in deposits QoQ.
Separately, CNBC-TV18 learns IDFC First Bank is investing aggressively in technology even as fintech solutions like accounting aggregators are changing the face of banking. V Vaidyanathan, Managing Director and CEO at IDFC First Bank discussed this further.
“The big growth area for us was mortgages, the mortgages grew quarter sequentially at 11 per cent, so you can annualize it,” he said.
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The bureau records from CIBIL point out that normally the credit bureau records in a month used to be about 2.3 crore credit requests from banks and lenders, last month was 2.8 crore, he noted.
In terms of investments in technology, he mentioned, “We all know the game is shifting so rapidly away from the conventional ways of lending. And even on the deposit side new apps, new technologies, new interface layers, new customer interface layers, all that is coming up. So, we got to be in tune with the time.”
On account aggregator, he said, “In the case of account aggregator, initially, the supply of data will be more from the large bank and of course, small banks will get the benefit of that kind of information. But you forward three years, five years, eight years, everybody will benefit. The big deal is that the ecosystem will grow.”
According to him, a big base with cashback would attract more customers to the financial entity.
“If you have a big base and you are giving cashback, then no doubt the customers will come there to open a financial service. Therefore, it is in a way good that the market will open up. There are many underlying implications. We got to wait, wait and watch and see where the regulator leans towards,” he said.
For the entire discussion, watch the accompanying video.