Ajai Kumar, Chairman and Managing Director of Corporation Bank, is making best use of technology. Be it in the implementation of new products or in the day-to-day operations of the bank.

While iPads and iPhones keep him in constant touch with other top executives of the bank, he makes efforts to reach his customers with iPad and android applications along with the traditional channels.

In an interview to Business Line , he spoke on his plans and performance on various sectors. Excerpts:

How do you see the growth of banking sector at a time when economic growth in the country during Q2 came to a decade low of 5.3 per cent?

Though there are expectations that the GDP numbers will be looking better in the third and fourth quarters, the overall weak sentiments are expected to continue, at least in the short run.

The slowdown in economic growth had an impact on the overall performance of the financial sector in general and the banking sector in particular.

Higher interest rates, subdued growth in earnings, rising bad loans, resultant increase in provisioning and restructuring of loans have put significant stress on the overall performance of banking sector. The credit and deposit growth in the current financial year have been moderated showing clear signs of slowing growth and high borrowing cost.

What measures have the bank taken to tackle a slowing economic growth scenario?

In our bank, we have taken conscious efforts to improve our retail, agriculture and SME business and also to reduce our dependence on bulk business. There has been an enhanced level of monitoring to ensure that the asset quality remains protected.

We are consistently innovating and adding value through technology-led delivery channels supported by a wide range of product offerings to maintain a high standard of customer service and profitability ratios.

What plans do you have to tackle NPA growth in the current scenario?

There is an increase in the level of NPAs in the banking system both in the first and second quarters of the current financial year and the upward trend is likely to continue for some more time.

As far as Corporation Bank is concerned, we have institutionalised a multi-pronged strategy to prevent further slippages with simultaneous stringent measures to recover/upgrade the slipped NPAs. The credit monitoring department is strengthened with the introduction of graded system of monitoring of borrowal accounts.

The recovery camps and swift enforcement of SARFESI action are extensively used. We have also closely followed up debt recovery tribunal cases.

You have exposures to some of the major corporates such as Kingfisher and Deccan Chronicle. How are you planning to tackle them?

As these advances are under consortium/multiple arrangement, we are falling in line with other member banks to expedite the recovery.

What plans do you have for MSME sector?

Our bank has initiated a process flow in the form of exclusive SME loan centres with dedicated relationship managers across the country.

Beginning from May 2012, 16 SME loan centres have been launched across the country in a phased manner. So far, the bank has disbursed Rs 2,254 crore covering 1,834 customers.

We have also launched ‘SME Grand Festival Loan Bonanza’ for a period of three months to meet the credit requirements of the excluded SME entrepreneurs.

Are you planning any focussed attention for agriculture lending like the one you initiated for MSMEs?

To render a focused attention to augment agriculture sector and financial inclusion, five Agri Business and Financial Inclusion Development Centres (ABFIDCs) have been launched at Bangalore, Chennai, Vijayawada, Ludhiana and Lucknow. These centres are actively involved in targeting corporate agri-companies and in conducting rural agri-credit camps to popularise our agri credit schemes.

In agriculture sector, we have added Rs 822 crore over March figure of Rs 7,140 crore.

How is the performance of the bank corporate lending?

The deteriorating macro-economic situation has culminated in a slower pace of growth in corporate advances.

As at September 2012, on year-on-year basis, the corporate advance has registered a growth rate of 6.8 per cent. Considering prevailing macro economy environment, the bank is focusing on corporate credit to meet companies genuine credit requirement without compromising on the quality of the credit.

What about retail lending?

The performance of retail credit in our bank is highly encouraging.

We have done about Rs 2,300 crore till now during the current financial year. That was the figure of full year of 2011-12. Four more months are still to go.

Low CASA base and high bulk deposits are the concerns for the bank. What steps have been initiated in this regard?

Improving the share of CASA deposits has continued to be an area of constant focus for the bank. The bank has taken a conscious decision to reduce its bulk deposit content and to improve the share of our retail and CASA deposits.

Besides, we are focusing on our newly opened branches to drive the CASA growth. In the last two-and-half years we have opened over 450 branches. That may broaden our customer base and garner more low-cost funds.

The tech-enabled services and alternative delivery channels may also help the bank to attract younger generation and upwardly mobile customers to open more CASA accounts.

Further, financial inclusion is another thrust area, where the bank is very active, which would also make it to access cheap funds from vast sections of the people.

How is the feedback for your recent initiative of tablet PC and iPad banking?

The objective of the bank is to enable customers to access the various products and services with ease and comfort. Customers, more particularly, the youth have grown from laptops to mobiles to tablets and smart phones.

Digital banking has brought about information accessibility and synergy through all alternate channels and it is the youth who are willing to try out experiment and experience new things.

Corporation Bank is one of the few banks, which has developed an app to target this growing segment of users. The bank is getting positive feedbacks on this initiative, and we plan to extend a few other payment services also through these devices.

The name of the game is ease. Once you make it easy, customers get attracted towards it.

vinayak.aj@thehindu.co.in

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