Banks should launch more “innovative products” to suit the changing economic scenario, said Ashwani Kumar, Chairman and Managing Director, Dena Bank.

For instance, special credit cards could be introduced to address the healthcare and hospitalisation needs of customers, he said. “In view of the rising cost of medical treatment on hospitalisation, customers may require a huge sum of money all of a sudden. In India, a large segment of population does not have health insurance or cashless treatment facility. In such situations, banks can think of launching health credit cards for certain pre-assessed limits,” Kumar said.

He was speaking at an interactive session on growth opportunities for the Indian banking industry as part of FICCI’s 10th annual banking conclave.

Emphasis should also be laid on sale of third-party products to boost non-interest income, Kumar pointed out.

“Apart from the traditional banking business where margins are getting squeezed, banks need to aggressively market third-party products, such as insurance and mutual funds,” he said.

The Dena Bank CMD also pointed out that investment banking is expected to become one of the fastest growing segments and “large corporate customers could be tapped for higher support for international expansion, and mergers and acquisitions in the coming years.”

Retail growth

Dena Bank, he said, will take a host of initiatives to boost its retail business.

“We are expecting nearly 18 per cent growth from the retail segment this fiscal. Retail asset hubs and processing hubs are being set up in various locations,” he said. Dena Bank’s retail advances grew nearly 6 per cent to Rs 7,870 crore as on June 30, 2013.

The bank will also replicate the housing loan fair held in Gujarat and in other States.

Also, the bank is planning to open 12-13 branches in West Bengal this fiscal, he said.

ayan.pramanik@thehindu.co.in

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