Money & Banking

Canara Bank to launch loan product for start-ups

AJ Vinayak Mangaluru | Updated on January 22, 2018 Published on November 16, 2015

Canara Bank is planning to launch a loan product exclusively for start-ups in the country. Rakesh Sharma, Managing Director and Chief Executive Officer of the public sector bank, said this on the sidelines of his visit to the Mangaluru circle office of the bank on Monday.

Though he did not reveal details on the proposed loan product, he said in all probability it would be launched by the month-end. “We have to make it (product) fool-proof so that there should not be any slippages. That is why are going cautiously on that. Those details are being finalised.”

Asked about the maximum amount that will be financed under this product, he said the nitty-gritty was still being finalised.

NPA level

Sharma said that the bank has set a target of bringing its gross NPA (non-performing assets) below 4 per cent by the end of the current financial year. The gross NPA of the bank stood at 4.27 per cent at the end of September 30.

Asked how NPAs would be lowered, he said the bank would be organising e-mega auctions. Properties taken under the SARFAESI Act can be auctioned, he said. The bank will also go for more one-time settlements.

Sharma said his target would be consolidation of the top-line and profitability. In this regard, the bank is focusing more on non-interest income. It is also focusing on increasing its CASA (current account, savings account) ratio from 25 per cent to 27 per cent by the end of this fiscal year. This would help lower the cost of deposits, he said.

The bank, which opened 1,000 branches in 2014-15, aims to open 250 branches in 2015-16. The process has also begun to recruit 3,000 clerical staff. It will be completed by March, Sharma added.

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Published on November 16, 2015
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