Dept of Posts to sell TVS' financial products

The Department of Posts (DoP) and TVS Finance and Services Ltd (TVSFS), a TVS group company, have jointly launched a business initiative, `Postman Akshaya', a first of its kind in Karnataka.

Under the scheme, which will be operational in Mysore and Nanjangud, DoP will act as 'Franchisee' of TVSFS and sell its loan products through the postman in the two postal divisions, after the success of which the scheme will be extended to other parts of the state.

Talking to the media prior to the launch of the scheme, chief postmaster general Meera Datta said the 150-year-old postal department having 5.5 lakh employees was in the red and incurred a loss to the tune of Rs. 1,300 crore and "we have to make it up."

While it had to cut down the non-revenue post offices, diverting the staff there to staff-hit post offices, DoP has to recreate or reinvent to the changing situations looking towards new revenue models.

"Also, with personal mail dwindling and commercial delivery growing, we are slowly expanding towards business development and computerisation everywhere. We have opened up post offices for various possibilities. This is the trend not only in India but also in countries abroad," she said.

"As a result of this diversification, finance companies want to reach to the grassroot level through the postman and and post offices. TVSFS is already with us for the last three years in Karnataka and Tamil Nadu," she said and added that DoP was already marketing UTI's mutual funds.

Meera Datta said the new arrangement offers TVSFS' customers in the rural and semi-urban markets the facility of availing a loan at their doorstep for purchase of a two-wheeler to consumer durables.

TVSFS President and CEO V Ramesh described the tie-up with DoP as a "land mark programme which will change the way financial business is done in India."

The DoP, Karnataka with 8,381 post offices offered an unmatched geographical coverage with 7,000 psotmen fanning out to even remote parts of the state. The new arrangement was an extension of the existing successful business relationship.

Under the scheme, he said the postman will handover the loan application to the customer at his doorstep when he goes for mail delivery, collects it and hands over to his post office, which in turn forwards it to the head post office, where a representative of TVSFS will collect it on daily basis.

After credit appraisal of the customer, the company will issue the pre-approval loan coupon, which will be delivered by the same postman to the customer at his doorstep. With the approved loan coupon, the customer can purchase the desired item of TVSFS.

The TVS group with 35 companies and Rs 12,000 crore turnover has presence in 150 districts in South India and is in the process of establishing operations in North and West India, added product head-retail R Ramanathan.