INDIAN BANK TO FOCUS ON STRONG GROWTH, PROFITABILITY IN FY20
13, Jun 2019
Prelims level : Economy Mains level : GS-III Technology, Environment, Economic Development
Why in News:
- Increasing CASA deposits, fee income to improve growth and profits in banks
- Indian Bank will strive for strong growth this fiscal with focus on profitability.
- The prime focus this year will be on increasing the current and savings deposits (CASA) and fee income, accelerating recovery in respect of impaired assets and containing the level of non-performing assets (NPA). The growth in business should culminate in improving the bottom line of the bank. During the current fiscal, the bank would strive for an healthy growth across corporate and retail, agriculture and MSME (RAM) segments.
- In FY19, the RAM sector constituted 58% and corporate 42%.
- Plans were on to set up corporate branches for handling exclusive large borrower accounts with exposure of ₹50 crore or more at select metro centres to improve quality credit dispensation and bottom line.
- Focus would be on forging partnerships viz. co-origination of loans in collaboration with NBFCs. Tying up with builders/vehicle dealers and tractor manufacturers and exploring cross-sell options through tie-ups with insurance companies for sale of Bancassurance products in life and non-life.