The public sector Corporation Bank has evolved a new business model with specific focus on some potential segments to scale up its revenues in Kerala region.
The identified segments include gold loans, financial assistance to SMEs, in retail loans category and agricultural finance, said S. Pattabiraman, Circle General Manager, Kerala and Tamil Nadu.
“Since the corporate model in the country is not conducive now because of slowdown, we are looking at these identified segments where there is good business potential,” he said.
By introducing various loan products in these identified segments, he said, the bank is looking at a growth rate of 20-25 per cent in its revenue in Kerala in the next financial year.
In the current fiscal, the two zones in Kerala, Kochi and Thiruvananthapuram, generated a business of Rs 5,300 crore up to February and the figure is expected to touch Rs 5,445 crore by the end of March this year.
The Kerala zone with a branch network of 91 contributed a business of Rs 4,200 crore in the last fiscal. There are also plans to open 20 more branches in the State in the next fiscal, he said.
Gold loans
He pointed out that the recent shift in gold loan business from NBFCs to public and private sector banks following RBI guidelines has thrown open more opportunities for banks in gold loans, especially in Kerala.
The total disbursement of gold loan business throughout the country by the Corporation Bank was Rs 4,000 crore. Of this, it had disbursed Rs 636 crore in Kerala this year so far against Rs 365 crore in the previous year.
In the retail loan segment, he said, the bank is expecting a growth rate of 30 per cent in the next fiscal with a focus on home loans, loans to doctors, traders etc.
This year, as on February, the bank disbursed Rs 231 crore in retail loans with the announcement of grand festival offer, attractive interest rates by waiving processing charges, he said.
Farm loans
There was good demand for agriculture loans as the total disbursements in Kerala stood at Rs 700 crore as on date against Rs 440 crore last year. The bank, he said, is extending credit to warehouse loans, equipment finance, loans for cash crops, aqua culture etc.
The bank has found calf rearing units as an emerging area in farm loan segment and started providing loans to such units in North Kerala and SHG loans for goat rearing units in other parts.
Referring to NRI deposits, he said the figure has touched Rs 550 crore till February against Rs 465 crore last year.
The bank is looking at increasing the business by at least 50 per cent in the next fiscal, as a bank team visited West Asian countries to channel the funds, he added.