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Bank of India (BoI) plans to put in place a mobile-based lending platform to grow its RAM (retail, agriculture and micro, small & medium enterprises) portfolio from about 54 per cent of total domestic loans to 65 per cent in two years.

The bank is developing a tech-stack for enhancing its digital banking presence, according to PR Rajagopal, Executive Director.

Referring to many banks having more than 60 per cent of total domestic advances in the RAM segment, he observed that digital lending will help re-balance BoI’s portfolio composition towards RAM advances.

“Our RAM portfolio is hovering around 54 per cent. So, we need a very strong digital push to grow this portfolio.

“We will launch a super app by the second quarter of FY23.  Vendors have been on-boarded to build the app,” Rajagopal said.

The app will ensure that the public sector bank can digitise loan sourcing, give in-principle sanctions to customers, and cross-sell non-banking financial services products such as insurance, mutual funds, etc.

“We are disbursing RAM loans aggregating almost ₹1 lakh crore on yearly basis without any digital back-up. If we put the tech stack in place, we can grow our RAM portfolio by ₹2 lakh crore over two years,” the BoI ED said.

The public sector bank ‘s RAM portfolio has grown from 51.60 per cent of total domestic advances as of March-end 2021 to 54.23 per cent as of December-end 2021. Gross domestic advances increased from ₹3,62,361 crore as of March-end 2021 to ₹3,82,365 crore as of December-end 2021.

The Bank’s RAM portfolio grew 12.47 per cent year-on-year (YoY) to ₹2,07,381 crore in the third quarter ended December-end 2021. The corporate and other advances de-grew 3.95 per cent YoY to ₹1,25,864 crore. The Government and the Government-guaranteed advances were up 3.25 per cent YoY to ₹49,120 crore.

On muted growth in the corporate book, Rajagopal said: “While corporate delveraging has happened, private investments need to pick up. So, credit pick up in this segment will take some time.”