DBS Bank India collaborates with HDFC ERGO and Atradius to provide Trade Credit Insurance solution to Tata Metaliks
This credit insurance deal is amongst the first to leverage Trade Credit Insurance. The revised framework was rolled out by the Insurance Regulatory & Development Authority of India (IRDAI) in November 2021, allowing banks to participate in this proposition.
DBS has proven global expertise in managing Trade Credit solutions and is using its global experience to offer best-in-class solutions to customers in India. Through the collaboration between DBS, HDFC ERGO and Atradius, this solution enables corporates to transfer the risk of their account receivables onto an insurer while getting financing against those insured receivables from a bank. Corporates can leverage this solution to transform the credit receivables, reduce risk and speed up their cash conversion cycle. The ability to increase sales to long-standing customers of the corporates differentiates this solution from other financing propositions. Therefore, it is a unique value addition for businesses.
Divyesh Dalal, Managing Director & Head, Global Transaction Services, DBS Bank India, said, “We expect insurance-backed receivable discounting to grow into a key working capital management as well as a sales enablement tool for corporates in India. The solution will help treasurers to drive discussion around corporate customers where there is a need to structure the credit risk. In this endeavour, DBS has partnered with insurers like HDFC ERGO and Atradius to create an active trade credit insurance market in India. The deal is expected to ease the credit receivables for not just Indian corporates but also small and medium enterprises. It would help transform the trade landscape in India.”
Sanjay Kaw, President, Commercial Business, HDFC ERGO said, "Following IRDAI's guidelines for Trade Credit Insurance, we are delighted that DBS is one of the first movers in the Indian market, supporting financial transactions backed by Trade Credit Insurance. The policy protects the banks from a potential buyer default in case of funded receivables".
Karishma Suvarna Gadia, Commercial & Sales Head, Atradius India, mentioned, “Opening up of regulations on Trade Credit backed financing holds great opportunities; Atradius prides itself in being in the forefront to find solutions to best suit a client’s needs. We are happy to be associated with DBS to facilitate their working capital solutions.”
DBS is a leading financial services group in Asia with a presence in 18 markets. Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 13 consecutive years from 2009 to 2021. DBS was also ranked No. 1 on Forbes' list of the World's Best Banks in India for two consecutive years.
DBS Bank has been present in India for 27 years, opening its first office in Mumbai in 1994. DBS Bank India Limited is the first among the large foreign banks in India to start operating as a wholly-owned, locally incorporated subsidiary of a leading global bank. DBS provides an entire range of banking services for large, medium and small enterprises and individual consumers in India. In 2016, DBS launched India's first mobile-only bank – digibank, which now has ~1 million savings accounts. In November 2020, Lakshmi Vilas Bank was amalgamated with DBS Bank India Limited. The bank now has a network of nearly 600 branches across 19 states in India.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets. DBS is committed to building lasting relationships with customers and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established an SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia. In 2020, DBS introduced the "Towards Zero Food Waste" initiative as part of a global sustainability practice to encourage a shift in behaviours and mindsets to reduce food waste.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all our 30,000+ staff representing over 40 nationalities. For more information, please visit www.dbs.com.
About HDFC ERGO General Insurance
HDFC ERGO General Insurance Company is a joint venture between HDFC Ltd. and ERGO International AG; the primary insurance entity of the Munich RE Group of Germany. HDFC ERGO is one of India’s largest non-life insurance companies in the private sector. A digital-first company, transforming into an AI-first company, HDFC ERGO is a leader in implementing technology to offer consumers the best-in-class service experience. The company has created a stream of innovative & new products as well as services using technologies like Artificial Intelligence (AI), Machine Learning (ML), Natural Processing Language (NLP), Robotics, and IBM Watson. HDFC ERGO offers a range of general insurance products and has a completely digital sales process with ~93% of retail policies issued digitally. The self-help tech platform developed by HDFC ERGO has empowered the customers to avail 58% of the services virtually in a self-help mode on a 24x7 basis with ~40% of the customer requesting services digitally.
The Company offers a complete range of General Insurance products including Health, Motor, Two-wheeler, Home, Travel, Cyber, Agriculture, Credit, and Personal Accident in the retail space along with Property, Marine, Engineering, Marine Cargo, Group Health, and Liability Insurance in the corporate space. Be it unique insurance products, integrated customer service models, top-in-class claim processes, or a host of technologically innovative solutions, HDFC ERGO has been able to delight its customers at every touch-point and milestone to ensure consumers are serviced in real-time.
Please log on to www.hdfcergo.com for more information on HDFC ERGO and the products and services offered by the Company.
DBS Bank India
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