Driven by improved loan growth in the retail, agriculture and MSME (RAM) segment, Bank of India plans to expand its loan portfolio in these segments during the financial year. In progress. Within the RAM segment, Bank of India’s retail loan portfolio saw the highest growth, followed by the agriculture and MSME sectors. The bank’s corporate loan book remained in the range of Rs 1.22-1.29 trillion in the four quarters of FY22.
The growth in personal loans comes from home loans and auto loans, which are the two main segments contributing to its personal portfolio. Home loans, the largest contributor to the bank’s retail loan book, grew by 13.5% in FY22 to Rs 43,788 crore. Auto loans increased by 50% to Rs 10,353 crore. The bank has entered into tie-up deals with automakers such as Maruti Suzuki, Tata Motors, Hyundai Motors and Mahindra & Mahindra to boost auto lending. The personal loans segment also grew by more than 100% to Rs 5,483 crores. This led to 18.5% growth in the overall retail lending segment in FY22.
In the agriculture sector, the bank’s total outstanding balance as of March 31 increased by 12.5% year-on-year to Rs 66,418 crore. The bank has issued 1.86 lakh Kisan Credit Cards (KCC) with credit limits of Rs 2,565 crore for flexible use of credit. Lending to the MSME sector increased by 9.5% year on year to Rs 69,462 crore.
The bank also plans to launch a slew of digital initiatives in FY23, including installing micro ATMs, bulk UPI payments to businesses and government entities, integrating digital products under a single app and the addition of loyalty rewards programs in mobile banking.
The bank also plans to contain funding costs by improving its current account savings account (CASA) ratio. As of March 31, the bank’s CASA ratio improved by 9.26% over one year.
The lender is also taking steps to reduce the non-performing asset (NPA) ratio. The bank is in the process of updating its predictive loan slippage program to a user-friendly version that will provide more targeted information. The bank will transfer the monitoring of Special Mention Accounts (SMA) directly to the respective branches and is also developing an automated SMA portfolio management system, which will cover SMA risk grading, collection actions, geotagging and time analysis. real. The bank’s asset quality improved in FY22 in terms of gross and net NPA and fees skids.