For lack of sound business opportunities during the current economic slowdown, South Indian Bank saw only 35 per cent of its Rs 5,000-crore worth corporate loans sanctioned in the first half of the current fiscal (2013-14) being utilised.

Ruling out any reduction in interest rates until December, Amitabha Guha, Non-Executive Chairman, and Abraham Tharian, Executive Director, told newspersons here on Tuesday that SIB had already reduced housing loan rates to 10.5 per cent in H1 FY14 from 11.5 per cent in H1 FY13.

The housing loan segment has seen an increase of over 50 per cent in the first half of the current fiscal.

SIB’s gross non-performing assets (NPAs) were much lower at 1.36 per cent as on June 2013, compared to the industry average of nearly 2.7 per cent, they said.

Guha said SIB’s gold loan segment contributes 21 per cent to the bank’s books having a total loan portfolio of Rs 33,000 crore.

SIB is looking to increase the number of its ATMs and branches from the existing 830 and 775 to 1,000 and 800, respectively, by March 2014.

It is also aiming to boost its turnover from Rs 76,000 crore (with a net profit of Rs 502 crore) in 2012-13 to Rs 88,000 crore ( net profit of Rs 600 crore) in 2013-14.

The bank, which opened its Gujarat regional office here on Tuesday, will add 10 new branches in Gujarat and Madhya Pradesh this year, to have a total of 30 branches in the two States. The new regional office will focus on small and medium enterprises, corporates and microfinance institutions.

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