Federal Bank Ltd. on Wednesday opened 29 branches, 26 in Tamil Nadu alone, to extend its enterprise potential, mentioned a prime banker.(*29*)
“We ended last year with 200 branches in TN. Now, it is 250, of which 26 were opened today. This is the first time that we are opening so many branches in a single state,” mentioned CEO Shyam Srinivasan.(*29*)
These branches will concentrate on offering gold and kissan loans, SME loans and taking deposits. Retail, agri and MSME accounts for 56% of the financial institution’s credit portfolio, whereas TN fetches 10% of its complete enterprise.(*29*)
“We are not only strengthening our presence in TN, Karnataka, Andhra and Telangana, but also in the north and east. While the west and north have potential for corporate lending, south is known for commercial banking and SME loans,” he mentioned.(*29*)
The personal lender had deliberate to open 100 branches in FY24 as in opposition to 75 within the year-ago interval, however has gone past and opened 140 branches taking its complete to 1,500 branches.(*29*)
Currently, the Aluva-based financial institution has 601 branches in Kerala, 250 in TN, and about 200 in remainder of south. (*29*)
Asked about economical viability of the brand new branches, Mr. Srinivasan mentioned 80-90 branches that have been opened in Tamil Nadu within the final 18 months have already damaged even.(*29*)
