Money & Banking

Karur Vysya Bank upbeat about loan growth

Surabhi | Updated on: Mar 22, 2022
B Ramesh Babu, Managing Director and CEO, Karur Vysya Bank.

B Ramesh Babu, Managing Director and CEO, Karur Vysya Bank.

Bank reported a seven per cent year-on-year growth in gross advances as on December 31, 2021

Karur Vysya Bank expects loan growth at about 10 per cent this fiscal and believes there will be continued demand for loans as the economy recovers from the Covid-19 pandemic.

“This year, we are expecting loan growth at around 10 per cent. Over a period, from we what have have inferred, we expect loan growth at about 13 to 14 per cent,” said B Ramesh Babu, Managing Director and CEO, Karur Vysya Bank.

The bank plans to focus on housing loans and loan against property in the retail segment, as well as small business loans up to ₹2 crore and business banking loans of up to ₹15 crore, he added.

“Our ability to have a connect with the customer is better and we can understand their need. Above all, we will be able to have better pricing,” Babu said in an interaction with BusinessLine.

The bank reported seven per cent year-on-year growth in its gross advances as on December 31, 2021, to ₹55,793 crore from ₹52,113 crore a year ago.

Expansion plans

It recently started a retail credit card division. The division will operate on a selective basis with few customers and staff up to March 31. It selected pre-approved existing bank customers to offer credit cards to. But starting April 1, based on the experience, it will progressively expand the offering to other customers.

Karur Vysya Bank was also planning to open about 15 branches this fiscal, of which it has managed to open about eight branches so far, Babu said.

The lender hopes to open the remaining branches by the first quarter of FY23 and will take a call on further branches post that.

Published on March 22, 2022
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