T Latha, the new Managing Director and CEO of Kerala-based Dhanlaxmi Bank, has taken up the turnaround of the crisis-ridden bank as a challenge. She is the first woman to be appointed as the MD of a bank in Kerala. With her 35 years of banking experience, she has some definite plans in mind to leverage the brand identity of the 90-year-old bank and garner a comfortable market share. Edited excerpts:

Why have you taken up an assignment with Dhanlaxmi Bank, given its history of troubles between the management and the board?

All organisations have its inherent strengths. A close look at Dhanlaxmi Bank clearly shows its strength with the required locational spread in niche markets (more particularly in Kerala), its manpower and customer base. I am of the firm belief that if you concentrate on the positives and take the team along, any challenge is surmountable. I have accepted this assignment and have taken it up as a challenge to turn around the bank.

What are your plans? What do you hope to achieve over the next three years?

Our main focus is to recover and reduce NPAs, prevent further slippages, and increase low-cost deposits and reduce the dependency on bulk deposits. This will help us control costs and increase the income stream. By this method, we would try and bring the bank into profit.

We are channelising all our efforts to bring down our NPA percentage substantially as on March 31, 2019. Similarly, we also aim to achieve a CASA share above 30 per cent.

Given that public sector banks are vacating some areas because of their troubles, is Dhanlaxmi Bank aiming to grab market share from them?

Our focus is to concentrate on retail credit, especially gold loans. Further, we are always open and are looking at areas where the bank has its strength to improve market share.

What about competition from new banks such as payment banks and small finance banks, including ESAF Bank, which are showing fast growth? Also, what about competition from NBFCs, especially in gold loans?

Dhanlaxmi Bank’s strong forte is in Kerala and South India. Our focus initially is to leverage on our brand name and manage to grow steadily in the region.

Further, there is enough potential in the market, and we are confident that we will be able to grow despite competition.

Healthy competition will always help good organisations grow further, and I am sure we will capitalise on our inherent strength to grow. We shall also be concentrating on gold loans and retail loans.

What is the impact of the Kerala floods on your bank? Which segments have been affected the most?

More than 50 per cent of our branches are in Kerala and most of our customers are also from the State. The flood impact on the socio-economic sector in Kerala will affect our business also, and the major affected segments will be agriculture, retail and MSME.

Will you consider interest waiver for farmers and other weaker sections of society? Is there any chance of a moratorium on interest payments for other segments?

The Kerala Government has proposed a scheme called RKLS (Resurgent Kerala Loan Scheme) to be implemented with the participation of banks in Kerala for supporting individuals and small businesses affected by the floods.

The bank is evaluating the proposal for effective implementation. Further, we are also implementing the SLBC-approved relief measures in the flood-affected areas.

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