• Privacy Policy
  • About Us
  • Contact Us
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
Cartographeum
No Result
View All Result

‘Aim to regain traders’ bank tag’

Juliet Woodard by Juliet Woodard
September 19, 2020
Home Business
Share on FacebookShare on Twitter

The 104-year-old private sector lender Karur Vysya Bank Ltd., popularly known as a trader’s bank, plans to regain its right to the appellation by foraying aggressively into metal loans and co-lending. Current account and savings bank accounts will be major focus areas, the bank’s MD and CEO, B. Ramesh Babu, said in an interview. Excerpts:What was the impact of COVID-19 on operations?Currently, transactions at the branch level remain low. Customers have started using other channels, as also KVB Dlite, a mobile banking app. Current account and savings account (CASA) contribution has gone up from 31% to 35%. People who don’t want to spend are retaining money in their savings accounts. Account openings during the pandemic outnumbered closures.What are your plans for the current year?Going forward, CASA will be the top-most focus area on the liability side. So, all the branches will focus on opening mid-segment current and savings bank accounts. On the advances side, we consider loans up to ₹25 crore as corporate loans. Earlier, we were taking exposure up to ₹200-300 crore. Now, we have taken a call to limit exposure to ₹125 crore per corporate account.Our higher exposures have been brought down to ₹125 crore. Even today, we have about 10 accounts that are of government-owned firms and have good track record. The way forward for these accounts is, we will grow, but it will be below ₹125 crore or ₹100-75 crore. Our main focus would be on the commercial segment which is below ₹25 crore. We have 800 branches [catering to such accounts], and we want to leverage the connect. KVB was actually a traders’ bank and had a lot of relationship banking. We want to go back to basics.We are looking at four verticals: commercial banking, retail and non-brand channel and metal gold loans and with a lower focus on corporates. Commercial banking, retail and agriculture will constitute 75% of the loan book and corporate, 25%. The bank will aggressively look at precious metals, that is, providing gold loans to jewellers and manufacturers. Earlier, our customers used to take metal gold loans from other banks by using letters of credit issued by us. What we want to do is to give our own customers metal gold loan, 5 kg, 10 kg or 20 kg, whichever way they want and later extend it to others. We will import gold and give it to them, for which we have arrangement with players.On an average, we have given ₹1,500 crore worth of non-fund base limits to our own customers. It is readily on our platter. We expect to grow by ₹600 crore on this account alone this year.What about consortium lending?Earlier we were a member of many consortiums. We were taking some 5% and if something happened, we had no say. That is the only reason we are seriously reconsidering; if we do not have a bigger share in the consortium, let us say 20% or 25%, then there is no point being a part of [a consortium]. But, if it is an excellent company and the concession rate is also pretty good, we can [participate] to the extent possible. But, we may not go for smaller exposures in a consortium. We have started co-lending with a few of the systematically important non-banking, non-deposit taking financial institutions. People can enter into an arrangement wherein, they can source the loan and pass it through our own system. The loans will be sanctioned and disbursed digitally with no manual intervention. We have tied up with seven NBFCs to take advantage of their wherewithal and footprint. This particular route may help us to get more business.

You have reached your limit for free articles this month.
To get full access, please subscribe.
Already have an account ? Sign in

Show Less Plan

Subscription Benefits Include

Today’s Paper
Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Faster pages
Move smoothly between articles as our pages load instantly.

Unlimited Access
Enjoy reading as many articles as you wish without any limitations.

Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.

Personalised recommendations
A select list of articles that match your interests and tastes.

Briefing
We brief you on the latest and most important developments, three times a day.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.

Tags: B Ramesh babutraders bank
Juliet Woodard

Juliet Woodard

Next Post
IPL 2020 Live: How to Watch IPL Online

IPL 2020 Live: How to Watch IPL Online

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

15th Finance Commission finalises report, to submit it to President on November 9

15th Finance Commission finalises report, to submit it to President on November 9

October 31, 2020
Netflix Indicted by Texas Grand Jury Over French Film Cuties

Netflix Indicted by Texas Grand Jury Over French Film Cuties

October 12, 2020

Trending.

Understanding Emergency Rental Assistance For Landlords And Tenants

Understanding Emergency Rental Assistance For Landlords And Tenants

January 27, 2021
Call of the mall – The Hindu

Call of the mall – The Hindu

October 16, 2020
Facebook Bars Deceptive Campaign From Pro-Trump Group

Facebook Bars Deceptive Campaign From Pro-Trump Group

October 10, 2020
Nirmala Sitharaman press meet live | Centre announces Atmanirbhar Bharat Rozgar Yojana for formal sector

Nirmala Sitharaman press meet updates | Finance Minister announces 12 schemes to boost economy

November 12, 2020
Redmi 9, Oppo A53 2020, More Phones Launching in India Next Week

Redmi 9, Oppo A53 2020, More Phones Launching in India Next Week

August 21, 2020

Cartographeum brings you the latest information about Tech,Real Estate & Business.

Follow Us

Categories

  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
  • Uncategorized

Tags

Amazon Apple Watch 2 Bombay stock exchange BSE Business Buying Guides china closing trade coronavirus Covid COVID-19 currency dollar rate economy Finance Ministry foreign exchange forex gold india indian economy Indian stock market Industry iOS 10 lockdown luxury homes market and exchange markets nifty Nirmala Sitharaman NSE oil pandemic Playstation 4 Pro rbi real estate Reserve Bank of India rupee rupee rate Rupee value rupee vs dollar sensex Sillicon Valley stock exchange Stocks USD

Recent News

Jimmy Fallon Puts His Manhattan Home On The Market For $15 Million

Jimmy Fallon Puts His Manhattan Home On The Market For $15 Million

March 5, 2021
Contemporary Lakefront Estate In Austin, Texas Sells For A Record Price Tag

Contemporary Lakefront Estate In Austin, Texas Sells For A Record Price Tag

March 4, 2021
  • Privacy Policy
  • About Us
  • Contact Us

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Review
  • Computers
  • Gear

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.