Kolkata-based lender, Allahabad Bank, is looking to strengthen its retail loan portfolio in the coming days.
According to Rakesh Sethi, Chairman and Managing Director of the bank, a conscious decision has been taken to slow-down corporate lending because of inherent risks of the bad loans.
“Corporate loans have remained flat and while we have seen a growth of 20 per cent in retail loan portfolio. Housing and gold loans are some of the focus areas. Several initiatives (to increase the retail portfolio) are already on,” he told Business Line.
Corporate loans accounts for around 65 per cent of the bank’s advance portfolio; while the remaining 35 per cent is retail loans.
“By the end of this fiscal we are targeting that 40 per cent of our loan book be from retail loans; while the remaining 60 per cent is from corporates,” he said.
The bank’s long term plan is to reduce the corporate loan portfolio to 45 per cent and increase the retail part to 55 per cent in the coming days.
According to Sethi, the stress of NPAs is likely to continue for another one to two quarters. “The stress (of NPAs) is likely to stay for the next one to two quarters,” he added.