Significant growth of friends got here via NBFC lending, co-lending and portfolio buyouts, which CUB had resisted previously, mentioned MD & CEO N. Kamakodi.
| Photo Credit: KSL
City Union Bank Ltd. (CUB) is exploring new alternatives in co-lending space corresponding to housing and car loans not solely to be aggressive but additionally to realize 12-14% growth throughout FY24.
“We have not gone into the retail lending, services lending or NBFC lending in the past,” mentioned financial institution MD & CEO N. Kamakodi.
“Now, I think we have to get into those segments and also to take it to the double-digit growth rate for the current year, for which we have started making our initiatives,” he mentioned throughout analysts name.
While evaluating CUB efficiency with most of its friends, he mentioned that important growth of the friends got here via NBFC lending, co-lending and portfolio buyouts, which the previous had resisted previously.
“The change in the environment is coming to a point that we also need to get into the bandwagon to take things forward,” he mentioned.
Talking on the housing entrance, he mentioned the financial institution noticed important variety of its present clients utilizing housing loans from different banks. Hence, the entry into this section.
On the gold-loan entrance, the financial institution has initiated dialogue with whom, the primary areas of operations are pre-dominantly exterior Tamil Nadu, the place CUB had robust presence and with few state-based NBFCs for car lending.
Going ahead, Mr. Kamakodi mentioned that present portfolio will represent 85% of mortgage ebook whereas 15% will come from new traces. In that 15%, about 8-10% shall be from co-lending and 5-7% from retail and different areas.
The board had lately fashioned a sub-committee for clean succession planning as Mr. Kamakodi’s tenure ends in April 2026. The committee’s job is to discover a successor and guarantee a clean switch of duty when the tenure ends.
