RBI Revisiting Credit Portfolio

Madurai: RBI is poised to regain its position and market share among the public sector banks (PSBs) as at the time of nationalisation.

Currently in 7th place, the bank is working to secure a market share of 4.25 per cent by the end of this fiscal, according to its Chairperson and Managing Director, H.A. Daruwalla.

Speaking to Business Line here on Friday, Daruwalla explained the strategy.

A decision has been taken to rework the credit portfolio. This includes curtailing real estate exposures, bringing down corporate lending and keeping the retail lending at about 25 per cent. Large branches in metros have been focussing on financing corporates, semi-urban branches on the SMEs and the rural branches on agricultural lending.

CBS adoption

In the adoption of Core Banking Solution, currently 703 out of the 3233 branches are brought under the network and by March’08, a total of 1000 would be covered. The bank has secured authorisations to open 183 new branches by March and already 129 of them have been opened. As at the end of September 2007, the business volume stood at Rs.1,45,000 crore, she said.

The bank is also concentrating on human resources development for improving the performance. In the contemporary scenario, survival of the fittest being the option, merger and acquisitions are suggested and ‘while I am inclined to think about the same, right now there is none in consideration’, she added.

The focus is on para-banking activities and non-fund incomes. ‘The aim is to become a one-stop shop for all banking activities’, she said.

Speaking about the performance of the bank, she said that the net NPA stood at 1.41 per cent and the bank made a net profit of Rs 222 crore at the end of September. The ATM strength would be raised to 350 by the end of this fiscal, she added.