With a 32 per cent growth in net advances in the third quarter of the current fiscal, Federal Bank is on the verge of gaining adequate share in the domestic lending business.
“For long, we were in the 0.7-0.8 per cent range. Now, we have crossed 0.9 per cent. We hope to cross 1 per cent during this quarter,” Shyam Srinivasan, Managing Director and CEO, Federal Bank, told BusinessLine .
Indian banking system is highly fragmented. Barring the top bank, which has 20 per cent plus share, the second rung comprises banks with market share in the 4-6 per cent range.
Srinivasan felt crossing the 1 per cent market share would spur employee confidence and customer acceptance levels. He explained that a two-pronged strategy, includingexpansion of geographies and widened product categories with strong digital focus beyond mobile banking, helped boost growth.
This strategy comes on the back of Federal Bank’s 4D model, which encompasses dominant play in the home market, doubling the share in the non-Kerala market, meaningful digital focus, and stakeholder delight.