City Union Bank MD & CEO N. Kamakodi says that in the present fiscal would see a excessive single growth charge towards earlier goal of 12-14%.
| Photo Credit: Special Arrangement
City Union Bank Ltd. (CUB) is betting large on the newly launched digital lending to attain 16-17% credit score growth charge over the subsequent two years, mentioned MD & CEO N. Kamakodi.
“My focus in the next four to eight quarters will be to reach growth rate of about 16-17% so that it increases return on equity and plough back profit to take care of our growth,” he mentioned in an interview.
The non-public sector lender is more likely to finish the present fiscal with a excessive single-digit credit score growth towards its earlier goal of 12-14%, on account of stoppage of Kissan Credit Card agri gold mortgage following regulatory commentary and divergence challenge final yr.
“Due to these disturbances, our daily average advance growth started reducing from 12-14% in December 2022 to 3-4% till September 2023.,” he mentioned. “We started the digital lending practices. Things are settling down and this process should support this growth,” the CEO added.
According to him, since November, the financial institution was in a position to see month-to-month credit score growth of 1%, or greater than ₹400 crore, that interprets into restoring 12-14% on an annualised foundation going ahead.
At the start of FY24, CUB mentioned it was aiming at 12-15% credit score growth, accelerating correct implementation of the digital lending course of, ending the fiscal with an honest web revenue growth, bringing down slippages to pre-COVID ranges and strengthening the management workforce to make organisation future prepared.
“We are by and large progressing on these lines, except on the growth, which is also just started seeing a positive trend. All the other factors have settled well,” he mentioned.
Asserting that recoveries are greater than the slippages, he mentioned that they had been in a position to see first rate growth in web revenue due to lowered credit score value. Hence, going ahead, the financial institution is heading in the right direction of getting again to pre-COVID degree of non-performing property.
