The Bengaluru-based PSU Canara Bank aims to increase exposure to its RAM (Retail, Agriculture, and MSME) portfolio, targeting a 60:40 ratio of RAM to corporate mix by March 2026.  

The move is in line with improving the bank’s bottom line, said MD and CEO K Satyanarayana Raju. Presently, the ratio of RAM to corporate stands at 56:44.  

“The increased focus on RAM will also help in improving the NII and the quality of interest. In Q3, RAM Credit grew by 14.56 per cent to ₹5,30,444 crore against 4,63,038 crore in December 2022,” said the CEO.

While the corporate sector will grow by 10 per cent in the current financial year, RAM will grow in the range of 13–15 per cent.

In the third quarter, the PSU reported a 27.88 per cent y-o-y increase in PAT, reaching ₹3,738 crore. Going forward, it expects the overall business to grow by 10 per cent, with credit business to grow by 12 per cent. Further, on the deposit side, the CEO also ruled out any immediate increase in the rate of interest. 

Additionally, the bank, which is planning to transfer its card business to its unlisted subsidiary, Canbank Computer Services Ltd (CCSL), expects to receive approval from the regulator by the first week of FY25.

Speaking to businessline, MD & CEO, K Satyanarayana Raju, said that they will soon be applying for its license. “We had a preliminary discussion with the stakeholders for the required permission, and we will soon be applying to RBI for the licence, and I’m sure if everything goes well, we will commence its operations soon,” he added.  

Considering the potential demand for the card business, the company decided to spin it off separately. As of now, it has an 11 crore client base; meanwhile, it has only 10 lakh clients on the card business side. “So, there is a huge potential that I want to take out of that potential so that you can make it in your industry,” he added.

Moreover, the state bank continues to eye opportunities in sectors such as infrastructure, green energy, data centre development, and real estate, particularly in Bangalore, Mumbai, and Delhi.

The PSU has opened 150 new branches in the current financial year, with plans to add another 100 in the next two months. Currently boasting 9,585 branches and 10,463 ATMs, the bank remains committed to strategic expansion and diversification.