Karnataka Bank to focus on CASA deposits, retail loans

Our Bureau Updated - January 28, 2013 at 10:43 PM.

Retail loans and current/savings deposits will be the focus areas for Karnataka Bank during the current fiscal.

By the end of 2012-13, the bank wants its CASA (current account savings account) deposits to be 27 per cent of the total deposits.

According to P. Jayarama Bhat, Managing Director and Chief Executive Officer of the bank, the share of CASA in total deposits was 23.4 per cent in the third quarter of 2012-13. CASA deposits of the bank stood at Rs 8,114 crore during the third quarter of 2012-13 as against Rs 7,138 crore in the corresponding period of the previous fiscal, a growth of Rs 976 crore.

“We want to increase the share of CASA deposits to 27 per cent by the end of the current fiscal,” he said.

The bank wants to mobilise 4 lakh CASA accounts, he said. Considering the consistent yield on retail loans , the bank is also focusing on the this segment during the fiscal. He said that the bank is looking to grow housing and auto loans to boost its retail portfolio. Stating that the bank’s gold loan business has done well in the first nine months of the current fiscal, he said this portfolio has increased from Rs 1,165 crore as at end-March 2012 to Rs 1,880 crore in end-December, a growth of Rs 715 crore.

Published on January 28, 2013 17:13