Making it happen: Digital transformation in TNPFC
Technology

Making it happen: Digital transformation in TNPFC

Technology can transform governance and make life easy for the common man. The question is not about the availability of technology, it is about attitude of those that have to first appreciate its relevance and then to have the “courage” to use it. Chandra Kant Kamble, a young IAS officer did that in an organisation that was archaic and conservative.

The Tamil Nadu Power Finance and Infrastructure Development Corporation (TNPFC) was incorporated in 1991 as a wholly owned State Public Sector undertaking and registered as a Non-Banking Finance Company (Deposit). TNPFC started with capital of Rs 99 lakhs. The deposits grew to Rs 33,000 crores by 2019. The company mobilises funds primarily through public deposits and has been funding Infrastructure projects undertaken by Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). As on 31.03.2021, the company’s paid-up capital is Rs. 3767 Cr. TNPFC has been a profit-making company since its inception.

The total financial assistance provided to TANGEDCO for power generation and related projects by way of long-term and short-term loans is Rs 1.56 lakh Crores. The net loan outstanding from TANGEDCO stood at Rs 39,984.79 Cr on 31.3.21.


Fixed Deposit service offerings

Fixed deposits are mobilized from the public, Institutions, Government Departments and the State Government Schemes such as cash incentive scheme, Bread-winning scheme, Chief Minister’s Girl Child Protection Scheme, Oru Kala Pooja Scheme and Covid 19 Scheme. The average interest rate offered by the company is 150 basis points more than the rates provided by public sector banks. Steady growth of deposits was possible even during the pandemic, due to focused policies and an attractive interest rate on term deposits.

Legacy Challenges in TNPFC

When Chandra Kant took over as Managing Director of TNPFC in 2018 it had archaic database issues like data integrity, redundancy, partial data and data multiplicity. The company operated with less than 50 staff members and none of the branch operations had a digital channel such as a web portal or mobile application. TNPFC did not have the ability to collect payments online for the creation of new fixed deposits. Further, the company was unable to renew or close existing fixed deposits online. Public depositors needed to visit the Chennai branch to receive the proceeds from closure of fixed deposits through a cheque instrument.

The regulatory directions on IT compliance and covid pandemic accelerated the pace of digital transformation at TNPFC, covering entire customer requirements fresh deposits, renewal, closure, nomination and other change request services.

Solution Framework: Innovation, Process Change, Technology Adoption & Capacity Building

Innovation

Online Web portal and mobile application based full fidelity deposit account creation for existing and new depositors, thereby offering deposit creation services 24 x 7 x 365 – a first for Government controlled NBFC.

Integration with Core Banking System to automate Cheque and Bank Statement reconciliation for both online and offline fixed deposit confirmation receipt generation.
Disbursement of Deposit Maturity proceeds directly via digital payment service integration across NEFT, RTGS, IMPS and UPI – providing real time business-hour payment services without cheque issuance and clearing delays.

Capacity Building And Operational Efficiency

Established Customer Support Team for managing average daily queries of 300 emails, 200 IVR calls and 100 postal requests.
Journey from 7154 backlog emails, to responding on same day basis. Between April and July, TNPFC responded to 12,411 emails compared to pre-covid period of less than 20 emails per day.

Automated online BoT based verification process for PAN Card and Aadhaar verification process for KYC norms. Video Conferencing for Video KYC towards Customer Identity Confirmation process as per RBI Regulatory Compliance.

The Impact

Digital Transformation of web portal and mobile application led to the mobilisation of retail deposits of over Rs 1,080 Crores through online channels alone, during the period from April 2020 till May, 2021. 

Cloud Computing operations automation enabled TNPFC mobile deposits online 24×7 with integrated payment gateway services and instant deposit confirmation receipt generation.

Provided digital banking experience through Digital Channels (web & mobile) for depositor interactions and service requests processing, thereby eliminating the need for physical presence.

Timely disbursement of deposit funds for beneficiaries approved by Social Welfare and School Education departments / State Government. Fund disbursement of Rs 1,626 Cr in real-time to 8 lakh beneficiaries across 32 districts, through the launch of online payment services integration by Hon’ble Chief Minister of Tamil Nadu.
Improved Treasury and Fund Flow management through the adoption of purpose- built Executive Workflow Management Application, thereby drastically transforming Fund Management towards transparent Cashflow pipeline visibility and approval process workflows for Government Securities Investments. Cloud deployment of GoI MEITY empaneled Cloud Service Data archival and retention towards regulatory compliance adherence. Adoption of business continuity plan towards robust operational management of TNPFC ICT preparedness and operational support during the pandemic led workplace and workforce restrictions.

Impact On Digital Interactions

In the middle of Covid-19 pandemic, the TNPFC management focused on improving depositor user experience through digital adoption across NBFC operations using automation and integration to re-organise diverse systems. The emphasis was on advanced analytics driven customer support for digital channels (email, IVR, WhatsApp) and a 24×7 Online web portal & mobile App for common citizens to carry out deposit service requests from the comfort of their homes.

With digitalisation of every function, TNPFC has shifted from generic demography of retired service personnel to a more “smart experience”, that provides a digital banking experience for all types of depositors, which is a refreshing change for a government run NFBC.

Financial performance

The CRAR (Capital adequacy) improved from 3.4% to 13.48%. For the first time, TNPFC started treasury operations, invested @1800 Cr in Gsec and T bills (earned @ 40 Cr) and used call options for Rs 1,000 cr bond repayment saving interest payment @ Rs 45 Cr. Profits that stood at Rs 83.20 Cr during 2018-19 rose to Rs 505.03 Cr during 2019-20 and further to Rs 723 Cr (unaudited) in 2020-21. 

Chandra Kant Kamble made it happen in an organization that had not looked at technology as a tool for improving its performance. He could make-it-happen on account of his foresight and his ability to convince the stakeholders about the whole idea and his team to deliver that idea.

Profile Author: Anil Swarup has served as the head of the Project Monitoring Group, which is currently under the Prime Minister’s Office. He has also served as Secretary, Ministry of Coal, and Secretary, Ministry of School Education. 

Technology can transform governance and make life easy for the common man. The question is not about the availability of technology, it is about attitude of those that have to first appreciate its relevance and then to have the “courage” to use it. Chandra Kant Kamble, a young IAS officer did that in an organisation that was archaic and conservative.The Tamil Nadu Power Finance and Infrastructure Development Corporation (TNPFC) was incorporated in 1991 as a wholly owned State Public Sector undertaking and registered as a Non-Banking Finance Company (Deposit). TNPFC started with capital of Rs 99 lakhs. The deposits grew to Rs 33,000 crores by 2019. The company mobilises funds primarily through public deposits and has been funding Infrastructure projects undertaken by Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). As on 31.03.2021, the company’s paid-up capital is Rs. 3767 Cr. TNPFC has been a profit-making company since its inception.The total financial assistance provided to TANGEDCO for power generation and related projects by way of long-term and short-term loans is Rs 1.56 lakh Crores. The net loan outstanding from TANGEDCO stood at Rs 39,984.79 Cr on 31.3.21.Fixed Deposit service offeringsFixed deposits are mobilized from the public, Institutions, Government Departments and the State Government Schemes such as cash incentive scheme, Bread-winning scheme, Chief Minister’s Girl Child Protection Scheme, Oru Kala Pooja Scheme and Covid 19 Scheme. The average interest rate offered by the company is 150 basis points more than the rates provided by public sector banks. Steady growth of deposits was possible even during the pandemic, due to focused policies and an attractive interest rate on term deposits.Legacy Challenges in TNPFCWhen Chandra Kant took over as Managing Director of TNPFC in 2018 it had archaic database issues like data integrity, redundancy, partial data and data multiplicity. The company operated with less than 50 staff members and none of the branch operations had a digital channel such as a web portal or mobile application. TNPFC did not have the ability to collect payments online for the creation of new fixed deposits. Further, the company was unable to renew or close existing fixed deposits online. Public depositors needed to visit the Chennai branch to receive the proceeds from closure of fixed deposits through a cheque instrument.The regulatory directions on IT compliance and covid pandemic accelerated the pace of digital transformation at TNPFC, covering entire customer requirements fresh deposits, renewal, closure, nomination and other change request services.Solution Framework: Innovation, Process Change, Technology Adoption & Capacity BuildingInnovationOnline Web portal and mobile application based full fidelity deposit account creation for existing and new depositors, thereby offering deposit creation services 24 x 7 x 365 – a first for Government controlled NBFC.Integration with Core Banking System to automate Cheque and Bank Statement reconciliation for both online and offline fixed deposit confirmation receipt generation.Disbursement of Deposit Maturity proceeds directly via digital payment service integration across NEFT, RTGS, IMPS and UPI – providing real time business-hour payment services without cheque issuance and clearing delays.Capacity Building And Operational EfficiencyEstablished Customer Support Team for managing average daily queries of 300 emails, 200 IVR calls and 100 postal requests.Journey from 7154 backlog emails, to responding on same day basis. Between April and July, TNPFC responded to 12,411 emails compared to pre-covid period of less than 20 emails per day.Automated online BoT based verification process for PAN Card and Aadhaar verification process for KYC norms. Video Conferencing for Video KYC towards Customer Identity Confirmation process as per RBI Regulatory Compliance.The ImpactDigital Transformation of web portal and mobile application led to the mobilisation of retail deposits of over Rs 1,080 Crores through online channels alone, during the period from April 2020 till May, 2021. Cloud Computing operations automation enabled TNPFC mobile deposits online 24×7 with integrated payment gateway services and instant deposit confirmation receipt generation.Provided digital banking experience through Digital Channels (web & mobile) for depositor interactions and service requests processing, thereby eliminating the need for physical presence.Timely disbursement of deposit funds for beneficiaries approved by Social Welfare and School Education departments / State Government. Fund disbursement of Rs 1,626 Cr in real-time to 8 lakh beneficiaries across 32 districts, through the launch of online payment services integration by Hon’ble Chief Minister of Tamil Nadu.Improved Treasury and Fund Flow management through the adoption of purpose- built Executive Workflow Management Application, thereby drastically transforming Fund Management towards transparent Cashflow pipeline visibility and approval process workflows for Government Securities Investments. Cloud deployment of GoI MEITY empaneled Cloud Service Data archival and retention towards regulatory compliance adherence. Adoption of business continuity plan towards robust operational management of TNPFC ICT preparedness and operational support during the pandemic led workplace and workforce restrictions.Impact On Digital InteractionsIn the middle of Covid-19 pandemic, the TNPFC management focused on improving depositor user experience through digital adoption across NBFC operations using automation and integration to re-organise diverse systems. The emphasis was on advanced analytics driven customer support for digital channels (email, IVR, WhatsApp) and a 24×7 Online web portal & mobile App for common citizens to carry out deposit service requests from the comfort of their homes.With digitalisation of every function, TNPFC has shifted from generic demography of retired service personnel to a more “smart experience”, that provides a digital banking experience for all types of depositors, which is a refreshing change for a government run NFBC.Financial performanceThe CRAR (Capital adequacy) improved from 3.4% to 13.48%. For the first time, TNPFC started treasury operations, invested @1800 Cr in Gsec and T bills (earned @ 40 Cr) and used call options for Rs 1,000 cr bond repayment saving interest payment @ Rs 45 Cr. Profits that stood at Rs 83.20 Cr during 2018-19 rose to Rs 505.03 Cr during 2019-20 and further to Rs 723 Cr (unaudited) in 2020-21. Chandra Kant Kamble made it happen in an organization that had not looked at technology as a tool for improving its performance. He could make-it-happen on account of his foresight and his ability to convince the stakeholders about the whole idea and his team to deliver that idea.Profile Author: Anil Swarup has served as the head of the Project Monitoring Group, which is currently under the Prime Minister’s Office. He has also served as Secretary, Ministry of Coal, and Secretary, Ministry of School Education. 

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