Mastercard Unveils Near Real-Time Cross-Border Payments for Banks

Mastercard has introduced a groundbreaking innovation called Mastercard Move Commercial Payments. This new solution aims to revolutionize cross-border payments for banks by enabling near real-time, predictable, and transparent commercial cross-border payments.

The solution facilitates payments that are almost instantaneous, 24 hours a day, 365 days a year. Banks and their customers gain end-to-end visibility, making cross-border transactions more predictable and transparent.

The innovation simplifies operations for banks, optimizing liquidity and reducing counterparty risk. It is fully compatible with existing correspondent banking arrangements between respondents and correspondents. Large clearing banks can extend the service to their institutional customers with minimal changes to their current processes.

Value added services tailored for a bank’s unique needs, including innovative risk control services and fraud analytics.

The solution is designed to support the growing demand for cross-border payments as businesses expand their international operations.

This innovation was revealed at the annual Sibos conference in Beijing and is expected to bring the efficiency of domestic payments to the cross-border payment space.

 

In a pilot in the UK with Lloyds Banking Group and UBS, using Fnality as the settlement venue, Mastercard Move Commercial Payments is being used to deliver near real-time, around-the-clock cross-border transfers.

Mastercard Move Commercial Payments is part of the Mastercard Move portfolio of money transfer capabilities that enables people and businesses to move funds quickly and securely, both domestically and internationally.

To recall, Citi and Mastercard have joint solutions for Mastercard debit cards aim for near real-time transfers. Besides Citi, Alipay too have partnered with Mastercard to expand its services to allow consumers to receive money in their digital wallets, facilitating cross-border transactions.

Visa Direct enables near real-time cross-border money movement, allowing funds to be available within 30 minutes. PayPal too offers near real-time transfers, especially when linked to debit cards. Western Union generally provides near real-time transfers, depending on the recipient's location and delivery method.

However, Mastercard Move Commercial Payments stands out from other cross-border payment solutions in several ways. While other solutions offer near real-time transactions, Mastercard Move Commercial Payments emphasizes 24/7 availability and 365 days a year.

Mastercard Move provides end-to-end visibility and predictable transaction times, which is crucial for businesses managing international operations. The solution optimizes liquidity and reduces counterparty risk, simplifying operations for banks. It includes a multilateral arrangement to reduce counterparty risk and ensure certainty in end-to-end transaction clearing.

Additionally, Mastercard Move has Flexible Settlement Options. Banks can optimize liquidity without affecting foreign exchange and deposit-related revenues.

These features make Mastercard Move Commercial Payments a comprehensive solution designed to address the pain points of cross-border payments more effectively than some of its competitors.

Growing Use of AI & ML Can Risk Financial Stability, Says RBI Governor

Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), recently warned about the potential financial stability risks associated with the growing use of artificial intelligence (AI) in financial services.

During the RBI@90 High-Level Conference in New Delhi, the RBI Chief highlighted several concerns. He conveyed that "Heavy reliance on Al" could lead to concentration risks, especially if a small number of technology providers dominate the market.

Failures or disruptions in Al systems could cascade across the financial sector, amplifying systemic risks. Increased use of Al could make financial systems more susceptible to cyberattacks and data breaches, Shaktikanta Das said in the RBI@90 High-Level Conference in New Delhi.

The "opacity" of Al makes it difficult to audit and explain the algorithms driving financial decisions, potentially leading to unpredictable market consequences, warned Das. 

Das urged banks to enhance their liquidity buffers and remain vigilant in the social media space to deal with any unforeseen situations. He also emphasized the need for adequate risk mitigation practices to address these emerging vulnerabilities.

It's a timely reminder of the importance of balancing innovation with risk management.

The RBI@90 High-Level Conference was held in New Delhi to mark the 90th anniversary of the Reserve Bank of India (RBI). The event featured a keynote address by RBI Governor Shaktikanta Das titled "Central Banking at Crossroads". During his speech, Governor Das discussed the evolving role of central banks amid global uncertainties and emphasized the importance of financial stability and economic growth.

The conference also included panel debates and discussions on various topics related to central banking, including the impact of emerging technologies like AI on financial systems.

SBI Unveils Its First Co-Lending CPC

Shri. Surender Rana DMD (ASF), SBI inaugurated State Bank of India’s first co-lending Centralised Processing Cell (CPC) at Nariman Point, Mumbai. The CPC is a dedicated unit for co-lending business of NBFCs.

In order to have seamless operations of specialized activity under Co-lending, a dedicated Centralised Processing Cell (CPC) for Processing & Sanctioning of Loans is setup by the Banks.

The NBFCs under the Co-Lending Model sources the loan proposals from all locations in India and forwards to the Bank from their Centralized Location. On behalf of the Bank, CPC undertakes Loan proposals Acceptance, Disbursement, Monitoring and Reconciliation.

The inauguration ceremony witnessed the presence of SBI dignitaries, Shree. Shantanu Pendsey CGM (ABU & GSS) and Smt. Salila Pande CGM MMR. Other dignitaries from the corporate centre and NBFC teams of NIDO Home Finance and Ugro Capital Ltd. were present as well.

The inauguration of co-lending CPC is a step towards demonstrating SBI’s commitment to growing its co-lending book with a focus on safety and sustainability.

This commitment is in line with SBI's ongoing efforts to support MSMEs and the under-served population where the bank has made significant strides in FY24. To strengthen support to MSMEs having little or no access to formal credit, SBI has entered into a co-lending agreement with 9 NBFCs. Further, to dedicatedly continue reaching out to the unserved and under-served populace, the bank has signed MoUs with 23 NBFCs/HFCs under co-lending model.

The inauguration of the co-lending CPC reflects SBI’s determination to grow the co-lending book in a safe way and reiterates the bank’s dedication towards welfare of MSMEs and under-served population.

How Much Monthly Interest Can You Earn from Fixed Deposit?

Fixed Deposits (FDs) are one of the most popular investment options in India, offering a safe and reliable means to grow your savings. Among the various types of FDs available, those that offer monthly interest payouts may be attractive for individuals looking for a regular stream of income. Understanding how much monthly interest you could earn from a fixed deposit may help you plan your finances better.

Understanding Fixed Deposits with Monthly Interest Payouts

A fixed deposit with a monthly interest payout option allows investors to receive the interest earned at the end of each month. This type of FD, often referred to as a monthly interest payout FD, could be ideal for retirees. It may also be useful for those seeking a steady income stream without disturbing their principal investment.

Factors Affecting Monthly Interest Payout from FDs

Several factors influence the amount of monthly interest you can earn from a fixed deposit:

• Interest Rate: The rate offered by the bank or NBFC is an important factor. Higher interest rate on fd result in higher monthly payouts.
• Deposit Amount: The principal amount you invest directly impacts the interest earned. Larger deposits yield higher interest.
• Tenor: The duration of the fixed deposit also plays a role. While the monthly interest payout option provides regular income, the interest rate might vary based on the tenor chosen.
• Compounding Frequency: The frequency of interest compounding (monthly, quarterly, half-yearly, or annually) can affect the total interest earned. However, it may be less relevant for monthly payout FDs since the interest is not compounded.

Calculating Monthly Interest for Different Deposit Amounts

To understand how much monthly interest you can earn from a fixed deposit, let’s take a look at some examples. We will consider different deposit amounts and typical interest rates offered by banks and NBFCs. The monthly interest can be calculated using the formula:

Monthly Interest = Principal × Annual Interest Rate/12 x 100

Example 1: Monthly Interest for ₹1 Lakh Fixed Deposit

Consider an example where you invest ₹1 Lakh in a fixed deposit with an interest rate of 6% per annum, and opt for the monthly interest payout option. The monthly interest would be:

Monthly Interest = 1,00,000 × 6/12 x 100 = ₹500

So, for a ₹1 Lakh fixed deposit at 6% p.a., you would earn ₹500 per month.

Example 2: Monthly Interest for ₹5 Lakhs Fixed Deposit

For a higher deposit amount of ₹5 Lakhs with the same interest rate of 6% per annum, the monthly interest would be:

Monthly Interest = 5,00,000 × 6/12 x 100 = ₹2,500

Thus, a ₹5 Lakhs fixed deposit at 6% p.a. would yield ₹2,500 per month.
Example 3: Monthly Interest for ₹10 Lakhs Fixed Deposit

For an even larger deposit amount of ₹10 Lakhs with an interest rate of 6% per annum, the monthly interest calculation would be:

Monthly Interest=10,00,000×6/12x100=₹5,000

Therefore, a ₹10 Lakhs fixed deposit at 6% p.a. would provide a monthly interest income of ₹5,000.

Benefits of Monthly Interest Payout Fixed Deposits

Opting for an FD with a monthly interest payout has several benefits:

• Regular Income: Provides a steady income stream for those looking to supplement their income or interest in a fixed income scheme.
• Budgeting: Helps in better financial planning and budgeting as you receive a fixed amount every month.
• Liquidity: Ensures liquidity by providing monthly interest, which can be used for monthly expenses without breaking the FD.Taxation on Interest Earned

The interest earned from fixed deposits is taxable under the Income Tax Act, 1961. The interest income is added to your total income and taxed according to your income tax slab. Banks and NBFCs deduct Tax Deducted at Source (TDS) if the interest income exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

To optimise your post-tax returns, consider splitting your deposits across different banks or NBFCs. Alternatively, you could invest in a tax-saving fixed deposits with a 5-year lock-in period.

Tips for Maximising Monthly Interest from Fixed Deposits

Here are some tips to help you maximise the monthly interest earned from your fixed deposits:

• Compare Interest Rates: Regularly compare FD interest rates offered by different banks and NBFCs to ensure you are getting the best possible rate.
• Opt for Senior Citizen Rates: If you are a senior citizen, take advantage of higher interest rates offered specifically for you.
• Choose the Right Tenor: Select a tenor that aligns with your financial goals and offers the best interest rates. Longer tenors often come with higher rates.
• Diversify Investments: Spread your investments across multiple banks or NBFCs to maximise returns and minimise risk.
• Reinvest Interest: If you don’t need the monthly interest for expenses, consider reinvesting it in another FD to benefit from compounding.

Fixed deposits with monthly interest payouts can be a good option for individuals seeking a reliable and regular income stream. By understanding the factors that influence the monthly interest earned and strategically selecting the best rates and tenors, you can optimise your returns from these investments. Whether you are looking for a steady income or simply want a safe investment option, fixed deposits could be a powerful tool in your financial planning.

Calculating the monthly interest for different deposit amounts helps in planning your finances effectively. With careful selection and management of your FDs, you could enjoy a stable and predictable income, ensuring financial stability and peace of mind.

Kuwait's Burgan Bank Selects TCS BaNCS to Transform its Core Banking

Tata Consultancy Services will help the bank redefine customer experience and create a modern core banking solution that strengthens the bank’s position as a pioneer of progressive banking in the region

Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), has signed a deal to modernize the core banking technology of Burgan Bank, a leading commercial bank in Kuwait. The bank will deploy TCS BaNCS™ to consolidate multiple standalone legacy applications into a contemporary universal banking solution that drives innovation and strengthens customer relationships.

Burgan Bank is one of the youngest commercial banks in Kuwait, with a regional network of over 160 branches and 360 ATMs. It will harness the products of the TCS BaNCS™ suite such as core and digital banking, payments, retail and corporate loan origination, wealth management, regulatory compliance, and more to simplify and digitally transform its technology landscape. The solution will enable the bank to manage higher transaction volumes, enhance automation, and improve staff productivity. With TCS BaNCS™ rich set of APIs, the bank will serve its diversified customer base of corporate, retail, and private banking segments with an integrated solution.

Tony Daher, Group Chief Executive Officer, Burgan Bank, said, “We have embarked on a very broad technology and digital transformation journey that will create an integrated banking ecosystem; one that not only meets the current market expectations but also exceeds them. Modernizing our core systems will support our ongoing focus on innovation and delivering value to our customers through defining personalized offerings and intuitive, streamlined experiences. This will pave the way for sustainable growth. We have selected TCS BaNCS, which is widely used by banks in the region, to create a complete solution that will address our twin objectives of leading innovation and delivering excellent customer experience.”

TCS BaNCS has been deployed by and garnered several recognitions for various banks in the Middle East region for core banking transformation. It has an intelligent digital core and is built on a modular and open architecture. Its extensive configurability will enable the bank to develop innovative solutions with quick time to market, ensuring convenient, simplified, and contextual experiences for customers. The bank will benefit from end-to-end AML/KYC capabilities across all business lines by deploying the Quartz for Compliance solution.

Venkateshwaran Srinivasan, Global Head, Financial Solutions, TCS, said, “We are pleased to partner with a progressive institution such as Burgan Bank in their transformation journey. TCS BaNCS has a strong presence in Kuwait and the larger GCC region in the form of multiple mission-critical deployments of our solutions at leading institutions. This selection by Burgan Bank is a testament to our continued investments in the TCS BaNCS product suite to make it market-ready, compliant with regulations and our commitment to successful execution.”

This partnership reaffirms TCS’ position as a digital transformation partner of choice in the MEA region, where the IT major has had a strong presence for over three decades. With operations in nine countries across MEA, TCS boasts a workforce of over 9,000 employees serving more than 150 customers regionally. TCS has also been recognized as a Top Employer by the Top Employers Institute for eight consecutive years in the UAE, Saudi Arabia, and South Africa.

Infosys Collaborates with First Abu Dhabi Bank (FAB) to Optimize and Modernize its IT Infrastructure Services

Leveraging Infosys Cobalt to deliver industry-leading infrastructure-managed services

Infosys, a global leader in next-generation digital services and consulting, today announced a multi-year strategic collaboration with First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates (UAE), to optimize and modernize FAB’s IT infrastructure services.

As part of this collaboration, Infosys will leverage Infosys Cobalt, a set of services, solutions, and platforms for enterprises to accelerate their cloud journey, to deliver industry-leading, infrastructure-managed services, including service desk capabilities, to transform FAB’s IT infrastructure. Infosys will help integrate a suite of enterprise tools to drive significant improvements in FAB’s service quality, risk reduction, and business outcomes. These include:

• Artificial Intelligence- (AI) and Machine Learning (ML)-based automation, providing self-healing and self-help capabilities.
• Proactive and prognostic monitoring and observability, improving the resilience of the infrastructure estate.
• Blueprint-based environment provisioning, helping to reduce provisioning time exponentially, allowing faster time to market.
• Leveraging Infosys Topaz, an AI-first set of services, solutions, and platforms, using generative AI technologies to improve productivity and efficiency.

The collaboration aims to transition to an outcome-oriented, automated-managed services model that delivers high-quality, compliant IT services with increased speed and agility. In the long term, it will also establish a highly scalable and flexible IT infrastructure.

The Middle East is a strategic growth market for Infosys, and this collaboration furthers Infosys’ committed focus in the region to enable large enterprises to navigate their cloud-first, digital-first, and AI-first journeys.

Suhail Bin Tarraf, Group Chief Operating Officer, First Abu Dhabi Bank (FAB), said, “At FAB, we are committed to transforming our IT organization and delivering world-class services that drive tangible business outcomes. After a thorough evaluation, we selected Infosys as our strategic partner due to their proven expertise, innovative solutions, and the strong trust they built at all levels. Infosys’ outcome-oriented managed services model coupled with their automation-powered delivery approach will help us significantly improve service quality, compliance, and operational efficiency.”

Dennis Gada, Executive Vice President and Global Head of Banking & Financial Services, Infosys, said, “We are delighted to collaborate with First Abu Dhabi Bank to optimize and modernize their IT infrastructure services, by leveraging Infosys Cobalt and Infosys Topaz. FAB recognized the need to transform their IT operating model, and entrusted Infosys with their IT infrastructure, enabling their digital journey to proceed faster and with more resilience on the backend. By leveraging our global expertise and investments in AI, cloud and infra, Infosys will also enable FAB to transition to an outcome-oriented, automation-driven execution model and help position it as a digital leader in the financial services industry.”

RBI Bars Kotak Mahindra Bank from Onboarding New Customers

The Reserve Bank of India (RBI) has taken regulatory action against Kotak Mahindra Bank. As of recent reports, the RBI has directed the bank to stop onboarding new customers through its online and mobile banking channels. Additionally, the bank has been instructed to cease issuing new credit cards with immediate effect.

This decision comes after the RBI found significant deficiencies in the bank's IT risk management during their examination. The issues identified include non-compliances in areas such as IT inventory management, patch and change management, user access management, vendor risk management, data security, and data leak prevention strategy, among others.

It's important to note that existing customers of Kotak Mahindra Bank, including credit card holders, will not face any service disruptions and can continue to use their services as usual. The bank is required to address these concerns in a comprehensive and timely manner to meet the regulatory standards set by the RBI.

The immediate halt on onboarding new customers through online and mobile banking channels will likely slow down the bank's customer growth, especially in the digital space where most new customers are acquired nowadays.

Such regulatory actions can affect the bank's reputation among stakeholders, including customers, investors, and partners. It may lead to a loss of trust and confidence in the bank's ability to manage risks, particularly IT and data security risks.

Bain Capital Reportedly Selling $431 Mn Worth Stake in Axis Bank To Make Exit

Bain Capital is reportedly planning to sell a stake worth approximately $431 million in Axis Bank through a block deal. The private equity firm is offering 33.4 million shares at a price range of Rs 1,071 to Rs 1,076.05 per share. This move is expected to mark Bain Capital's exit from the lender after an investment period of over six years.

On the day prior to the announcement, Axis Bank's shares closed 1.7% higher at Rs 1,077 on the National Stock Exchange. Over the past year, Axis Bank's shares have provided investors with returns of over 26%.

The private equity firm, which first invested in the bank in November 2017, will be exiting its holding through a stake sale. This move comes after Bain Capital has gradually reduced its stake in Axis Bank over the past years, with previous sales in December last year and earlier.

Bain Capital's decision to sell its stake in Axis Bank is likely driven by a strategy to realize profits from its investment. The private equity firm has seen a substantial increase in the bank’s valuation since its initial investment in November 2017, and it may view the current market conditions as an opportune time to exit the investment. This is a common practice in the private equity industry, where firms invest in companies and later sell their stakes when they believe they have maximized their return on investment. It's also worth noting that Bain Capital has been gradually reducing its stake in Axis Bank over the past years, indicating a strategic divestment plan.

The sale of Bain Capital's stake in Axis Bank will have no direct impact on the bank's day-to-day operations. Such transactions typically involve the transfer of shares between investors and do not affect the operational aspects of the company. However, it might have some influence on the bank's stock market performance in the short term, as large block deals can sometimes lead to volatility in the share price.

The Securities and Exchange Board of India (SEBI) defines a block deal as a single transaction of a minimum quantity of shares or a minimum value of Rs 5 crore. Block deals are executed separately from regular market trading and take place through a separate trading window. Block deals last for 35 minutes, starting at the beginning of trading hours.

After Bain Capital sell its entire stakes, Axis Bank's management and operational strategy will continue to be guided by its board and executive team. The bank has been performing well, with shares giving over 26% returns to investors in the last year, indicating a strong operational standing. The exit of a major investor like Bain Capital is more of a financial market event than an operational one for Axis Bank.

The current ownership structure of Axis Bank is such that foreign Institutions hold the largest share with 52.92%, Mutual Funds and Banks have a 20.74% stake. Other Investors include 2.8%.

The General Public holds 5.22% while Financial Institutions have a 7.16% stake. There are also shares held as GDRs, accounting for 3.22%.

This structure reflects a diverse set of investors, with a significant portion being held by institutional investors, which is common for large private sector banks. Promoters, such as SUUTI [created by restructuring the Unit Trust of India (UTI)], LIC, GIC, and other insurance companies, played a key role in the bank's establishment but currently do not hold any shares. The bank's strong institutional investor presence indicates confidence in its management and growth prospects.

Axis Bank has several major investors. Notably, Oman’s Pension Fund and Government Pension Fund Global are among the most recent investors. Additionally, the bank's financial reports indicate a strong institutional investor presence, with the number of FII/FPI investors increasing and mutual funds also raising their holdings. Axis Bank's own presentations highlight their strategic initiatives and performance, which likely attract and retain such investors.

UAE's Zand Bank Subscribes To Infosys Finacle Corporate Banking Suite Hosted on Microsoft Cloud

Zand Bank Subscribes to Infosys Finacle’s Corporate Banking Suite on Microsoft Cloud to Deliver New-Age Banking Experiences

Zand Bank, the UAE's first digital-only bank, has chosen to subscribe to the Infosys Finacle Corporate Banking Suite hosted on Microsoft Cloud. This initiative is set to enhance the bank's corporate banking services by leveraging advanced cloud-native solutions and the latest in AI and predictive analytics.

The deployment of the Finacle Corporate Banking Solution Suite's modular framework and expansive suite of features will significantly accelerate the launch of innovative services by Zand Bank.

 

From left: Sriranga Sampathkumar (Regional Head of Business - MEA, Infosys Finacle); Vicky Bhatia (Chief Financial Officer, Zand); Sanat Rao (Strategic Advisor, Infosys Finacle); Michael Chan (Chief Executive Officer, Zand); Adam Woolford (Chief Technology Officer, Zand); Ganesh Premsankar (Business Head - MENAT, Infosys Finacle) at the signing ceremony held at the bank headquarters, in Dubai, UAE.

The alignment with Zand's cloud-native strategy will ensure exceptional performance, flexible scalability, and improved operational efficiency. The ability of Infosys Finacle to assimilate and process a vast array of data, partnering with sophisticated analytics platforms, will offer cutting-edge services to Zand Bank's customers.

This strategic move is expected to position Zand Bank at the forefront of the digital finance landscape, integrating emergent technologies like AI, blockchain, and digital asset management.

Zand is the digital bank for digital assets, with a high focus on accelerating the digital economy in the UAE and beyond. Zand was built to change the way the UAE banks, leveraging the power of advanced data capabilities, an agile operating model, and cutting-edge technologies to simultaneously simplify and upgrade the customer experience.

Zand adopts a distinctive approach to banking, providing products and services to help support businesses at every stage. Committed to providing secure, reliable, and innovative solutions through integration of blockchain and AI technologies Zand continues to pave the way for the adoption and integration of digital assets into mainstream finance.

HDFC Bank Raises Rs 2,910 Crore Through Infrastructure Bonds

HDFC Bank India's largest private bank, has recently raised ₹2,910 crore through infrastructure bonds. These funds will be utilized for various projects, including those related to power, roads, and affordable housing.

The bonds have a 10-year maturity and carry an "AAA" rating from CRISIL. It's noteworthy that the money raised through infrastructure bonds is excluded from liquidity norms, meaning it does not attract Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.

In a previous issuance in December 2023, HDFC Bank had raised ₹7,425 crore via infrastructure bonds with a coupon rate of 7.71%. These bonds play a crucial role in financing critical infrastructure development across the country.

For investors, these bonds offer a stable investment avenue with the backing of a reputable institution like HDFC Bank. The bank's commitment to funding essential projects contributes to India's growth and development. 

These bonds are specifically earmarked for funding projects in areas such as power, roads, and affordable housing. Here are the key details:

Issue Size: The initial issue size was ₹1,000 crore with an additional green shoe option of ₹2,000 crore.

Coupon Rate: The coupon rate for these bonds, which have a 10-year maturity was fixed at 7.65%.

Credit Rating: These bonds carry an "AAA" rating from CRISIL, indicating their high credit quality and low risk. 

Exclusion from Liquidity Norms: The funds raised through infrastructure bonds are excluded from liquidity norms, meaning they do not attract Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements. 

Advanced Strategies with SIP Calculators: Maximizing Returns and Managing Risks

Investing in mutual funds through Systematic Investment Plans (SIPs) has become increasingly popular among investors in India. SIPs offer a disciplined approach to investing, allowing investors to invest a fixed amount of money at regular intervals, typically monthly. The convenience and flexibility of SIPs have led to a surge in their popularity, and many investors use SIP calculators to plan their investments and maximize returns while minimizing risk.

SIP calculators are online tools that help investors calculate their investments' potential returns and the growth of their investments over time. They are easy to use and require minimal inputs. SIP calculators take into account the investor's investment amount, the investment period, and the expected rate of return from the mutual fund. The calculator uses this information to generate a detailed summary of the investor's potential returns and the growth of their investments, including the annual expected returns, the total investment amount, and the maturity amount.

Investors can use SIP calculators to plan their investments and understand the dynamics of the mutual fund they are investing in. This article explores some advanced strategies investors can use with SIP calculators to maximize returns and manage risks.

Understanding the Risk-Return Trade-off

One of the most crucial aspects of investing is managing risk. Investors can use SIP calculator online to understand the relationship between risk and return and plan their investments accordingly. Mutual funds with higher expected returns tend to have higher risks associated with them. Therefore, investors must weigh the higher expected returns against the higher risks involved and decide whether they are comfortable assuming this risk. SIP calculators can help investors make informed decisions by comparing the expected return and risk profile of different mutual funds.

Diversifying Your Portfolio

Diversification is an essential strategy in managing risk. It involves spreading investments across multiple assets to reduce the risk associated with a single asset. Investors can use SIP calculators to plan their portfolios and spread their investments across multiple mutual funds with different risk profiles. This strategy helps balance risk and potentially higher expected returns.

SIP calculators can help investors understand the impact of diversification on their investments. They can calculate the expected return and risk of different portfolios using SIP calculators and select the optimal mix of mutual funds that offers the best risk-return trade-off.

Rebalancing Your Portfolio

Investors must periodically review and rebalance their portfolios to ensure they remain aligned with their financial goals. SIP calculators can help investors gauge when it's time to rebalance their portfolios by comparing their actual portfolio value to the expected portfolio value. Investors must also consider rebalancing their portfolios if the risk profile of their investments has changed. SIP calculators can provide valuable insights into the optimal mix of mutual funds for a balanced and stable portfolio.

Saving Taxes

Investors can use SIP calculators to plan their investments and maximize their tax savings. Equity-linked Saving Schemes (ELSS) are mutual funds that offer tax benefits under Section 80C of the Indian Income Tax Act. Investors can use SIP calculators to calculate the tax savings they can achieve by investing in ELSS. SIP returns calculator help investors minimize their tax liabilities by calculating the expected returns and tax savings of different investments.

Conclusion

SIP calculators are useful tools for investors to plan their investments and understand the dynamics of the mutual funds they are investing in. They offer a comprehensive analysis of an investor's potential returns, growth of investments and provide insights into the portfolio's risk profile. By using advanced strategies such as diversification and rebalancing, investors can maximize their returns and manage risks associated with investing in mutual funds. SIP calculators can also help investors save taxes and prepare them for their future financial goals.

Disclaimer: The investor must gauge all the pros and cons of trading in the Indian financial market. This article is for informational purposes only and does not constitute financial advice. The information presented in this article is based on past performance and may not be indicative of future results. Please consult with a professional financial advisor before making any investment decisions.

In summary, investors should use SIP calculators to plan their investments and understand the dynamics of mutual funds. Advanced strategies such as diversifying portfolios and rebalancing can help maximize returns and manage risks. SIP calculators can also help investors save taxes and plan for their future financial goals.

India Post Payments Bank (IPPB) Achieves 8 Crore Customers Milestone

India Post Payments Bank (IPPB) has just announced the attainment of a significant milestone, with eight crore customers now benefiting from its innovative and inclusive financial services.

Since its inception in 2018, the IPPB has been dedicated to providing accessible and affordable banking solutions to every corner of the nation. This remarkable achievement of reaching eight crore customers reflects the trust and confidence placed in IPPB by the people of India. The establishment of India Post Payments Bank was a strategic move to bridge the financial gap, empower the underserved population and drive financial inclusion through a combination of traditional and digital banking services.

With a commitment to financial inclusion, IPPB has played a pivotal role in empowering individuals across diverse demographics, including those residing in remote and underserved areas. The bank's focus on digital banking services has facilitated seamless transactions, making banking services accessible to a broader spectrum of the population.

“We are thrilled to announce that India Post Payments Bank has reached the milestone of 8 crore customers. This achievement is a testament to our mission of making banking services available to every Indian, regardless of their location or socio-economic status,” said Shri Easwaran Venkateswaran, MD & CEO (Interim) and COO of IPPB.

Last year in April, IPPB collaborated with Airtel to launch WhatsApp Banking Services for its customers, enabling them to access banking services on their mobile phone.

In December 2020, IPPB unveiled a digital payment app ‘DakPay’, as part of its continuous efforts to provide Digital Financial inclusion at the last mile across India.

The IPPB’s customer-centric approach, coupled with a wide network of post offices, has significantly contributed to this milestone. The bank remains committed to furthering financial inclusion, introducing innovative products and enhancing customer experience in the coming years.

"As we celebrate this achievement, we express our gratitude to our customers, stakeholders, and the dedicated team at the IPPB & Department of Posts for their unwavering support. The journey towards a financially inclusive India continues, and the IPPB remains at the forefront, driving positive change through accessible banking services, " said the press release by Ministry of Communications. 

India Post Payments Bank (IPPB) has been established under the Department of Posts, Ministry of Communication with 100% equity owned by Government of India. IPPB was launched on September 1, 2018. The bank has been set up with the vision to build the most accessible, affordable and trusted bank for the common man in India. The fundamental mandate of India Post Payments Bank is to remove barriers for the unbanked & underbanked and reach the last mile leveraging the Postal network comprising 155,000 Post Offices (135,000 in rural areas) and 300,000 Postal employees.

The IPPB’s reach and its operating model is built on the key pillars of India Stack – enabling Paperless, Cashless and Presence-less banking in a simple and secure manner at the customers’ doorstep, through a CBS-integrated smartphone and biometric device. Leveraging frugal innovation and with a high focus on ease of banking for the masses, the IPPB delivers simple and affordable banking solutions through intuitive interfaces available in 13 languages.

It is committed to provide a fillip to a less cash economy and contribute to the vision of Digital India. India will prosper when every citizen will have equal opportunity to become financially secure and empowered. Our motto stands true – Every customer is important, every transaction is significant and every deposit is valuable.

Website: www.ippbonline.com

LTIMindtree Integrates Its Subsidiaries Syncordis and Nielsen+Partner to Form Banking Transformation Practice

LTIMindtree [NSE: LTIM, BSE: 540005], a global technology consulting and digital solutions company, announced integration of its subsidiaries; Syncordis and Nielsen+Partner to form a specialized Banking Transformation Practice (BTP). LTIMindtree’s BTP is uniquely positioned to deliver end-to-end Consulting, Digital and IT services, leveraging commercial off-the-shelf (COTS) products and platforms serving Banks and Capital Market firms.

Post this announcement, the shares of LTIMindtree gained up to 2.4 %, on Thursday.

LTIMindtree acquired Syncordis in December 2017 and Nielsen+Partner in January 2019. Through this integration, LTIMindtree aims to combine complementary capabilities of two successful companies with a proven track record in delivering industry-leading growth.

Nachiket Deshpande, Whole-Time Director and Chief Operating Officer, LTIMindtree, said, “We envision the newly formed Banking Transformation Practice to deeply serve our global clients, empower strategic partnerships and deliver productized services. We are confident that by enabling end-to-end transformation for our clients, BTP will help LTIMindtree deliver industry-leading growth.”

Guillaume Desjonqueres, Chief Executive Officer, Syncordis, said, “In LTIMindtree BTP, customers will find a partner, large enough to champion their end-to-end complex transformational aspirations and nimble enough to care deeply for them. We are excited about this integration, the potential of deeply serving our global clients and success it brings for all of us.”

LTIMindtree’s BTP will offer customers significantly enhanced product/platform capabilities, a more diverse set of end-to-end, core-to-consumer offerings further augmented by deeper industry partnerships and a highly skilled talent pool.

Accenture To Work with Union Bank of India To Build New AI and Machine Learning Models

Union Bank of India, a leading public sector bank in India is collaborating with Accenture (NYSE: ACN) to design and develop a scalable and secure enterprise data lake platform with advanced analytics and reporting capabilities.

Accenture will work with Union Bank of India to build new AI and machine learning models that can help generate actionable insights for improved business forecasting, facilitate personalized offers for customers and enable intelligence for fraud detection, prevention, and mitigation.

This program will boost the bank’s operational efficiency and enhance its ability to offer customer-centric banking services and manage risk.

Using predictive analytics, machine learning and artificial intelligence, this platform will leverage structured and unstructured data from within the bank as well as from external sources to generate business-relevant insights.

The program will enable the bank to develop robust data visualization and reporting capabilities including interactive dashboards and reports for business, operational and regulatory purposes. Employees will have access to business intelligence that can enhance customer service and operational agility across the bank’s branches, contact centers and digital channels. As a result, the bank will be able to make informed decisions and identify new data-led opportunities for value creation. These will have an impact across its business portfolio including corporate, retail, and micro, small and medium enterprises (MSMEs) banking, and as well as across functions like risk management, treasury, customer service and operations, among others.

A. Manimekhalai, Managing Director & CEO, Union Bank of India said, “Leveraging advanced analytics and AI, we see potential to unlock tremendous value from data - to form meaningful customer relationships, enhance employee productivity and achieve profitable growth. This collaboration with Accenture is a key step towards our goal to evolve into a data driven and digitally forward bank that supports the next generation of banking services.”

Sandeep Dutta, Senior Managing Director and Lead - India Business, Accenture said, “The democratization of data-driven insights enabled by AI, generative AI and analytics is crucial to fostering a culture of customer-centricity, agility, and innovation. We look forward to working alongside Union Bank of India to shape their growth journey.”

Union Bank of India, established in 1919, is one of the largest Public Sector Banks in India with total business of ₹ 19.84 Trillion as on September 30, 2023. Union Bank of India has customer base of over 21.00 Crore (Approx.) and operates through 8,521 Domestic Branches and International Branches, 10,013 ATMs and workforce of over 76,700 employees. Union Bank of India has 9 Subsidiaries/JV/Associates across various Industries viz. Insurance, Banking, Asset Management, inter alia.

Philippines' Bank of Commerce Selects Infosys Finacle Suite for its Core Banking

Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys (NSE, BSE, NYSE: INFY), and Bank of Commerce (BankCom), an affiliate of San Miguel Corporation (SMC) group and one of the fast-growing universal banks in the Philippines, today announced the bank’s decision to select Infosys Finacle Suite for its core banking transformation.

The Infosys Finacle Suite of offerings, which includes Finacle Core Banking, Finacle Liquidity Management and Finacle Customer Data Hub solutions, will replace BankCom’s legacy platform and help the bank engage, innovate, and operate better to keep pace with evolving market expectations.

The key highlights of the digital transformation include:

• Finacle’s componentized core banking solution will allow BankCom to replace the existing legacy core systems in a risk-mitigated manner to digitally transform its business.
• The Finacle Core Banking solution will provide the bank with a comprehensive set of capabilities, including flexible product factories that will enable BankCom to unlock innovations with simple configurations to introduce differentiated products and services.
• The Finacle Liquidity Management solution will enable BankCom customers to identify, manage, and optimize liquidity across borders, currencies, and banks, on the go and on a device of their choice.

The Finacle Customer Data Hub solution will help unify customer data management across the organization. It will empower BankCom users to have a real-time view of customer relationships across platforms and channel applications. The solution will deliver a strong digital foundation to create and deliver personalized services and experiences.

Michelangelo R. Aguilar, President and CEO, Bank of Commerce
said, “We are pleased to have chosen Infosys Finacle due to its established presence in the Philippines, robust solutions suite, and record of reliable delivery in the market. The modernization of our core banking system is an integral part of BankCom’s digital transformation journey as a universal bank in delivering a truly digital banking experience to our clients. It will enable us to operate better, innovate, and keep pace with industry best practices, regulatory requirements, and evolving expectations of the markets we serve, notably the San Miguel Group and SMC ecosystem.”

Venkatramana Gosavi, Senior Vice President & Global Head of Sales, Infosys Finacle, said, "We are delighted to collaborate with Bank of Commerce in their digital core banking transformation journey. With Finacle's proven suite of solutions, we are confident that the bank will be able to achieve a client-focused banking platform, aligned with the bank’s strategic business and technology requirements. This partnership marks yet another milestone in our presence in the Philippines over the last two decades and underlines our commitment to helping Philippine banks stay ahead in the digital age.”

Standard Chartered appoints Zuzar Tinwalla as Chief Technology and Operations Officer (CTOO)

Zuzar Tinwalla

Standard Chartered Bank today announced the appointment of Zuzar Tinwalla as the Chief Technology and Operations Officer (CTOO) for India and South Asia. He takes over from Sarabjit Anand, who has decided to pursue other opportunities outside the Bank. 

Zuzar, who was earlier the Chief Operating Officer, has been with the Bank for 26 years, leading various teams across Operations and Technology with key focus on execution and finding innovative ways to leverage digital solutions to enable growth and scale. His in-depth knowledge and expertise across operations will be a key driver for executing the Bank’s strategy.

Zuzar will a member of the TTO Asia Management Team (MT) and continue to be a part of India Country MT. The appointment will be subject to regulatory approval or filing, where necessary.

Standard Chartered Bank has been operating in India with a continuous presence of over 160 years making it one of the oldest foreign banks in the country. The Bank has a network of 100 branches across 42 cities. Key business segments include Corporate, Commercial and Institutional Banking and Consumer, Private and Business Banking. For more information, visit https://www.sc.com/in/

Globally, Standard Chartered is a leading international banking group, with a presence in 53 of the world’s most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise. 

Niyo Receives Strategic Investment from Spring Marketing Capital, To Jointly Create a Large Brand in the Travel Banking Space

(L-R) Virender Bisht - Co-Founder & CTO, Niyo Raja Ganapathy - Founder & Partner, Spring Marketing Capital, Vinay Bagri - Co-founder & CEO of Niyo

Niyo, India’s leading digital and travel banking fintech, announces strategic investment from Spring Marketing Capital, a prominent name in the realm of strategic marketing and branding initiatives. Spring Marketing Capital partnered with Niyo in 2022 and this investment comes at a pivotal time for Niyo Global as the brand continues to strengthen its position and build the "travel banking" category in India through innovative product and marketing strategies.

Spring Marketing Capital is renowned for nurturing new-age brands through disruptive and innovative marketing solutions that drive business and consumer growth. Their unique business model is designed for them to be an intrinsic part of a brand’s journey and collaborate on a deeper level - by looking at problems as an outsider as well as an insider.

As part of this partnership, Spring Marketing Capital will contribute to Niyo's efforts in growing the travel banking sector by aiding the overall brand strategy, partnerships and campaigns. This partnership's strength was witnessed by the success of the 'Go Global with Niyo Global' campaign. The campaign witnessed significant traction across key properties like IPL, Wimbledon, French Open, US Open among others. The partnership leverages the strength of Niyo's disruptive products together with Spring Marketing Capital's marketing expertise.

Vinay Bagri, Co-founder & CEO of Niyo said, "We are delighted to welcome Spring Marketing Capital as a strategic investor to propel our marketing and branding endeavours. Over the past few years, Niyo has made a significant difference in the lives of India's urban millennials and outbound travellers, through its compelling product offerings. We’ve been able to create an impactful brand and with Spring joining forces with us, we’re excited to create a formidable brand with their strategic marketing innovations.”

Raja Ganapathy, Founder & Partner, Spring Marketing Capital said, “Vinay and Viren have complete clarity on their core target market and are building products that make the travel experience smooth, pleasurable and enjoyable - the way it was meant to be. I am not a betting man but I will wager that if you have a passport, you will very soon need and acquire a Niyo Global product. The team at Spring is excited to work closely with the Niyo team in their journey to create a cutting edge travel banking brand.”

Spring Marketing Capital is led by Raja Ganapathy, Arun Iyer, and Vineet Gupta, who bring together decades of investing and brand-building experience. The portfolio includes brands like Purplle, Jar, Leverage Edu, Mosaic Wellness, Juicy Chemistry and Dezy.

About Niyo

Niyo is India’s leading banking fintech that has revolutionised "travel banking" for Indians. The company was co-founded by banking veteran Vinay Bagri (currently, CEO) and technology veteran Virender Bisht (currently, CTO) in 2015. Niyo has two lines of business – Global banking and Mass banking. Their Global banking flagship products Niyo Global provides the best banking experience and value for international travelers. Niyo offers these digital banking services in partnership with the following banks: DCB Bank, Equitas Small Finance Bank, and State Bank of Mauritius. Currently, Niyo has a customer base of 4 million.

In this last Series-C round in 2022, Niyo raised $130 million, which was led by global VC and PE firms, Accel, Lightrock, and Multiples. Its other investors include Prime Venture Partners, Horizons Ventures, Tencent, JS Capital, Social Capital, and Beams Fintech Fund.

Niyo operates out of corporate offices in Bengaluru and has a sales presence in more than 20 states and union territories.

Website: https://goniyo.com/

About Spring Marketing Capital:

A skin-in-the-game marketing capital firm that partners with founders to offer capital & marketing expertise. Founded in 2019, the company is led by Raja Ganapathy, Arun Iyer, and Vineet Gupta, who bring together decades of investing and brand-building experience.

For more information, please visit https://springmarketingcapital.com

Standard Chartered Launches Sustainable Trade Loan for Financial Institutions

The offering will focus on sustainable end-use within the renewable energy sector

Standard Chartered today launched a sustainable trade loan offering for financial institutions. The new offering supports the Bank’s financial institution clients globally by providing liquidity to support the underlying trade flows associated with sustainable development, in areas where it is most needed.

With a current focus on the sustainable end-use¹ pillar within the renewable energy sector, the bank will reference its Green and Sustainable Product Framework – co-authored by ESG data, research and ratings firm, Morningstar Sustainalytics – on eligible activities the facility can be used to finance. Some examples include installation of wind turbines, purchase of solar panels, and sale of renewable energy battery storage systems.

The lack of funding for sustainability initiatives continues to be a challenge for companies – the bank’s recent research report notes that approximately 70% of large corporates and mid-sized companies found obtaining funding or finance for ESG and sustainability-related expenses and investments to be a major issue. Standard Chartered’s sustainable trade loan thus provides financial institutions with the much-needed liquidity to support trade flows associated with clean technology projects, accelerating the progress of [their] clients in meeting net zero commitments as part of their overall sustainability agenda.

“We know that many financial institutions and their clients want to play a greater role in driving sustainable outcomes by directing capital to where it matters most in their markets,” said Samuel Matthew, Global Head of Flow and Financial Institutions Trade at Standard Chartered. “The launch of our sustainable trade loan for financial institutions clients aims to support them by providing liquidity for flows that meet their sustainability aspirations. It further demonstrates our commitment to be a force for good by delivering targeted solutions and capabilities that can help to close the financing gap needed to achieve these goals.”

The offering builds on the bank’s sustainable trade finance proposition that was announced in March 2021, which was designed to help companies implement more sustainable practices across their ecosystems and build more resilient supply chains.

Watch the video to find out more:

https://www.sc.com/en/banking/banking-for- companies/transaction-banking/sustainable-trade-financing

¹Sustainable end-use refers to trade flows that support investment and spends that have a positive environmental and social outcome.

YES BANK Collaborates with Zaggle to launch Next-Gen Corporate Credit Card

The Corporate Credit Card aims to redefine corporate payments, expenditure management, and cash flow optimisation

YES BANK announced the launch of an innovative co-branded Corporate Credit Card in collaboration with Zaggle, a leading player in spend management, with a differentiated value proposition and diversified user base.

Christened ‘YES BANK Zaggle Corporate Credit Card’, the proposition marks a significant step in YES BANK’s journey towards ushering in a digital revolution by empowering businesses to reimagine their payment processes, streamline reconciliation, and efficiently manage company expenditures.

The card will empower businesses to bring in greater cost efficiencies by facilitating an integration with Zaggle’s ZatiX, a spend management and analytics platform, thereby allowing corporates to optimise cash outflows.

In an era where India's corporate landscape is rapidly expanding, strategic financial tools play a pivotal role in facilitating growth. A substantial portion of a company's budget is often allocated to travel and entertainment expenses, posing considerable management challenges. The YES BANK Zaggle Corporate Credit Card presents an innovative solution by granting businesses direct authority over company expenses. This includes the ability to set individual spending limits, place merchant category restrictions, and implement various other controls. Moreover, cardholders are entitled to a range of exclusive benefits, spanning from rewards and golf privileges to lounge access and travel insurance.

Speaking on the launch of the corporate credit card, Mr. Rajan Pental, Executive Director, YES BANK said, “We, at YES BANK are constantly looking to bring forth innovative banking solutions for corporate and retail customers. The partnership with Zaggle enables businesses to bring in operational efficiencies by allowing them to undertake banking transactions, manage company expenditures as well as keep track of all business-related overheads on a single platform. The co-branded card is a compelling proposition that offers upfront savings on business spends, along with the privilege of offering rewards on both spends and repayments on a large list of business expense categories. We will continue to explore avenues of co-creating more of such innovative propositions.”

Mr. Avinash Godkhindi, MD & CEO, Zaggle said, “The corporate T&E space is ripe for disruption as businesses increasingly demand real-time analytics to better manage spends, an industry need that we believe remains unmet. Zaggle ZatiX, deeply integrated with the YES BANK Zaggle Corporate Credit Card aims to addresses this need, to empowering businesses, and provide CFOs with the certain tools they need for intelligent spend decision making to assist with strategically controlling costs and optimally managing cash flow. Zaggle ZatiX a spend management and analytics platform, which helps businesses to bring in greater cost efficiencies."

This partnership builds upon the long-standing relationship between Zaggle and YES BANK in the prepaid card space, which started in 2016, has consistently aimed to provide ground breaking prepaid card solutions tailored to businesses.

YES BANK's track record in the fin-tech space is characterized by strategic tie-ups and initiatives that have fuelled the growth of start-ups by empowering them to thrive on the back of best-in-class banking solutions. This partnership stands as a testament to YES BANK's digital prowess, and shall contribute to the success of businesses in the digital era.

About YES BANK

YES BANK is a full-service commercial bank providing a complete range of products, services, and technology-driven digital offerings, catering to retail, MSME, and corporate clients. YES BANK operates its investment banking, merchant banking, and brokerage businesses through YES SECURITIES, a wholly-owned subsidiary of the Bank. Headquartered in Mumbai, it has a Pan-India presence including an IBU at GIFT City and a Representative Office in Abu Dhabi.

About Zaggle Prepaid Ocean Services Limited (Zaggle)

Zaggle is a leading player in spend management, with a differentiated value proposition and diversified user base (Source: Frost & Sullivan Report). Incorporated in 2011, the company operates in the business-to-business-to-customer segment and is amongst a small number of uniquely positioned players with a diversified offering of financial technology products and services. It has one of the largest number of issued prepaid cards in India in partnership with certain of its banking partners (12.7% of the country’s total prepaid transaction value as of March 31, 2022). Zaggle collaborated with three banking partners; i.e., IndusInd Bank Limited, YES BANK Limited and NSDL Payments Bank Limited; and has issued more than 45 million co-branded prepaid cards since inception of its business. It has a diversified portfolio of software as a service, including tax and payroll software, and a wide touchpoint reach. Zaggle is sector-agnostic, and its network of corporate customers covers the banking and finance, technology, healthcare, manufacturing, FMCG, infrastructure and automobile industries, among others, where it has relationships with brands such as TATA Steel, Persistent Systems, Vitech, Inox, Pitney Bowes, Wockhardt, MAZDA, PCBL (RP – Sanjiv Goenka Group), Hiranandani group, Cotiviti and Greenply Industries. Zaggle partnered with and has entered into arrangements with DBS Bank, Fibe (formerly, EarlySalary) and Tata Securities to offer their products and value-added services, including insurance, investment and tax planning, to its Users on their platform.

Disclaimer:

Zaggle Prepaid Ocean Services Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares and has filed a draft red herring prospectus (“DRHP) ” with the Securities and Exchange Board of India (“SEBI”). The DRHP is available on the website of the SEBI at www.sebi.gov.in, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com and the respective websites of the Book Running Lead Managers at www.icicisecurities.com, www.equirus.com, www.iiflsecurities.com and www.jmfl.com.

Investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the RHP which may be filed with the Registrar of Companies in future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP filed with the SEBI in making any investment decisions.

DBS Commits Up to SGD 1 Bn Over Next 10 Yrs to Step Up Support for Vulnerable Communities and Catalyse Social Impact

Augments existing community initiatives by the bank and DBS Foundation; first SGD 100 million to be deployed with effect from 2024

Bank’s employees will contribute over 1.5 million employee volunteer hours

Mr. Surojit Shome, MD and CEO DBIL

DBS today announced it will commit up to SGD 1 billion over the next 10 years to improve the lives and livelihoods of the low-income and underserved and foster a more inclusive society. The bank will deploy SGD 100 million each year in Singapore and its other key markets with effect from 2024. This commitment augments existing community initiatives by the bank and the DBS Foundation.

The funds will primarily go towards programmes that aim to support the more vulnerable segments in the community by:

• Helping them cope with immediate daily needs, such as food and housing;
• Giving them the opportunity to break out of the poverty cycle through education;
• Equipping them with important life skills such as digital and financial literacy; and
• Strengthening their emotional and mental resilience. 

In addition, the bank’s 36,000-strong workforce will commit over 1.5 million volunteer hours over the next decade to give back to society. Over the next few months, the bank will be identifying key organisations and programmes to partner and support.

Said Surojit Shome, Managing Director and CEO of DBS Bank India: “A combination of extreme climate events, an ongoing post-pandemic recovery and external economic headwinds have exacerbated the issues faced by the most vulnerable across Asia. DBS is a purpose-driven bank and the collective pledge of SGD1 billion over the next 10 years, as well as the increased volunteering commitment from our employees, underlines our intention to help mitigate some of these challenges and be a force for good.

With its roots as the Development Bank of Singapore, the purpose has always been at the heart of DBS’ DNA. In India specifically, the bank has recently set up a multi-state financial literacy & social entitlements programme, supported by the DBS Foundation, that aims to touch 200,000+ lives from underserved communities, 70% of which will be women. Another 100,000+ women, children and youth will be impacted through a livelihoods, education and future forward skills programme through initiatives that will be launched later in 2023.

In 2014, the bank established the SGD 50 million DBS Foundation to support social entrepreneurship. Since then, it has supported more than 800 Businesses for Impact across Asia and impacted over 800,000 lives by enabling access to healthcare, education, and employment. In line with this, DBS Bank India has also provided support through grants, accelerator partnerships and mentoring to over 40 local social enterprises across the country that provide market-based solutions to environmental and social needs.

During the pandemic, the bank created an SGD 10.5 million “Stronger Together Fund” to support those impacted by Covid-19. In 2022, DBS committed an additional SGD 100 million to deepen its ability to create impact beyond banking. The increased funding is helping to finance DBS Foundation's expanded scope, including its new Community Impact Chapter and other philanthropic and relief efforts. To date, the DBS Foundation has rolled out 10 community programmes in the areas of digital and financial literacy across the region, with a collective target of impacting 6.9 million lives over three years.