While persevering with to financial institution on gold loans as main growth driver, the financial institution is about to focus on alternatives within the SME, two wheeler and secured mortgage segments.
Retail head Mondal instructed ET in an interview that the financial institution is concentrating on to develop at 25-30% within the subsequent few years to ramp up its belongings and liabilities base.
“Gold loan is a high yielding business; so we will continue to focus on that segment along with strong push on SME loans, especially because of the Covid emergency guarantee loan scheme, two wheeler loans, education loans, loans against property, small business loans and some aspect of agriculture loans,” mentioned Mondal, President – Retail, SME, Operations & IT, CSB Bank. “We also don’t have plans to offer higher rates of interest to attract deposits. I rather focus on getting a strong customer franchise with sticky customers.”
Mondal added that the non-public lender was concentrating on a mortgage mixture of 70-30%, the place 70% can be retail and SME loans whereas the remaining can be wholesale belongings.
The lender desires to construct a powerful buyer franchise and broaden in markets comparable to Kerala, Tamil Nadu, Karnataka and Andhra Pradesh, Western India, Punjab and Rajasthan. Presently, half of its 454 branches are in Kerala.
“The idea is to build an asset base in the southern and western markets and a liability franchise in the northern markets. We will slowly expand the asset base in north India,” Mondal added.
The Thrissur-based lender noticed a 60% rise in its gold mortgage portfolio which stood at Rs 5644 crore, adopted by a 6% growth in SME loans which ended the December quarter at Rs 2131 crore. Corporate loans had been flat on a year-on-year foundation at Rs 3208 crore. The lender additionally reported steady asset high quality metrics with gross unhealthy mortgage ratio at 1.77% on the finish of December quarter versus 3.22% a 12 months in the past.
CSB Bank has additionally strengthened its leadership staff at its danger, know-how, retail distribution, SME, NRI and digital enterprise verticals.
Watsa’s Fairfax Holdings holds a majority 50% within the lender.