Bank of Maharashtra has opted for qualitative realignment of assets and plans to focus more on advances to the micro, medium and small enterprises and retail segment instead of large corporates.
Currently, the bank has an exposure of 11 per cent to the retail sector and 16 per cent to the MSME sector.
“We have set a target of 15 per cent to the retail sector and 20 per cent to MSME sector by next fiscal (2014-15),” Chairman and Managing Director Sushil Muhnot, told
For speedy recovery of MSME and retail stressed assets, the bank has initiated a one-time settlement scheme for loan sizes up to Rs 5 lakh. Exposure in this category is around Rs 800 crore.
“The scheme has been successful so far. Our main aim is to recover these non-performing assets by offering incentives to borrowers. Depending on the response to this exercise, the bank is planning to cover loan portfolio up to Rs 10 lakh in the next phase,” he said.
Branch network The bank is planning to increase its network of branches to generate additional business.
“Branches should generate business instead of just handling transactions. We are planning go for a hub and spoke model to expand our operations,” he explained.
The bank has 1,863 branches and is planning to to open 65 more before March 31. “The bank’s capital requirement will increase in the coming months. We will examine various options to infuse additional capital in the next fiscal. The bank’s capital adequacy ratio is about 11 per cent,” Muhnot said, referring to compliance with Basel-III norms.
anil.u@thehindu.co.in