Corporation Bank plans massive expansion
Mangalore-based public sector lender Corporation Bank plans aggressive expansion in Gujarat by adding 100 branches during the next financial year. The PSU bank would focus on micro, small and medium enterprises (MSME), retail and agriculture credit in the State.
“Gujarat is an important market for us. We will add about 40 more branches by the end of this fiscal to take the total to 150, while in the next year we will add another 100 branches in the State,” SR Bansal, Chairman and Managing Director of Corporation Bank, told Business Line .
Corporation Bank has over 2,000 branches spread across the country and it intends to add 500 more in the next year.
“We are planning to make our presence felt in all the regions, where there is scope,” Bansal added. He expressed optimism over the economy post the general elections. “The fundamentals of the industry have become strong. There is high growth potential. Stable government and lower inflation in the coming months would help the industry grow further,” he said.
The bank has about 19 per cent of its total credit portfolio in the MSME segment, while retail comprises 23 per cent. Agriculture credit holds about 9 per cent of the bank’s total credit portfolio.
“There is about 30 per cent growth in the MSME, retail and agriculture credits. Even in tight monetary situations, we have been able to achieve this growth and we expect the same to continue in these segments,” said Bansal.
Bansal said Corporation Bank has gross NPAs of 3.08 per cent, while net NPAs were at 2.15 per cent of total advances.(This article was published in the Business Line print edition dated February 21, 2014)