Karur Vysya Bank expects loan growth of around 10% this fiscal year and believes there will be continued demand for loans as the economy recovers from the Covid-19 pandemic.
“This year, we expect loan growth of around 10%. Over a period, from what we have inferred, we expect loan growth of around 13-14%,” said B Ramesh Babu, Managing Director and CEO of Karur Vysya Bank.
The bank plans to focus on housing loans and property loans in the retail segment, as well as small business loans up to ₹2 crore and corporate bank loans up to 15 crore ₹, he added.
“Our ability to connect with the customer is better and we can understand their needs. Above all, we will be able to have better prices,” Babu said in an interaction with Activity area.
The bank recorded a 7% year-on-year growth in its gross advances as of December 31, 2021, to ₹55,793 crore from ₹52,113 crore a year ago.
It recently launched a retail credit card division. The division will operate on a selective basis with few customers and staff until March 31. She selected pre-approved existing bank customers to offer credit cards to. But from April 1, based on experience, it will gradually expand the offer to other customers.
Karur Vysya Bank also planned to open about 15 branches in this financial year, of which it managed to open about eight branches so far, Babu said.
The lender hopes to open the remaining branches by the first quarter of FY23 and will bring in more branches after that.
March 22, 2022