Vakrangee slumps nearly 10 per cent despite announcing partnership with SBM Bank
Vakrangee Ltd announced on Thursday after the market hours that it has entered into a partnership with SBM Bank India to provide banking business correspondent (BC) services for pan India at Nextgen Vakrangee Kendra franchisees.
This will help Vakrangee in activating banking services at all its franchisee partners without any physical dependency on the partner bank branch being located near the outlet. Thus, it will also ease out the process of onboarding banking services.
Reacting to this, the stock of Vakrangee today hit the lower circuit of 10 per cent and made an intraday low of Rs 41.60 per share.
Meanwhile, the company reported a net profit of Rs 133.1 in Q2FY21, which rose by 22.4 per cent YoY, as compared to Q2FY20 when it had reported a profit of Rs 108.7 crore. The company reported revenue from operations of Rs 702.3 crore for Q2FY21, a decrease of 53.8 per cent, as against the revenue from operations of Rs 1,518.5 crore for Q2FY20.
SBM Bank offers universal products & services to its customers, which include deposits, advances, NRI services, treasury products, and trade finance services.
Vakrangee has pan India retail outlets that deliver real-time banking & financial services, ATM, insurance, e-governance, e-commerce, and logistics services to the unserved rural, semi-urban & urban markets. These stores are called Vakrangee Kendra, which acts as the one-stop-shop for availing of various services & products. Around 70 per cent of these Nextgen Vakrangee Kendra outlets are in tier-5 and 6 towns.