In This autumn, nearly two-thirds of the enterprise got here from non-gold loans (₹1,935 crore)
In This autumn, nearly two-thirds of the enterprise got here from non-gold loans (₹1,935 crore)
City Union Bank (CUB) Ltd. is eyeing non-gold loans to spur future progress, even because it plans to roll out its personal bank card inside the subsequent few weeks.
The personal sector lender – which is wanting past gold loans and the emergency credit score restrict assure scheme (ECLGS) for enterprise – mentioned it hoped to publish low- to mid-double digit progress for FY23 in contrast with 11% seen within the final fiscal.
“Going forward, the proportion of non-gold loans in the overall credit growth in FY23 will be more than whatever we saw in FY22,” mentioned N. Kamakodi, MD and CEO.
During the fourth quarter ended March, nearly two-thirds of the enterprise got here from non-gold loans (₹1,935 crore).
“As we are out of the COVID mindset… we will be growing and the opportunities on non-gold loans look higher compared to whatever we have seen in the past,” he identified.
Also on the anvil is the introduction of the financial institution’s personal bank card earlier than the announcement of Q1 outcomes. It mentioned it had obtained a proposal from ‘42CS’, which manages playing cards for numerous banks throughout geographies.
The firm can be the third-party service supplier for expertise and operational providers on a profit-sharing foundation.
“We will start slowly and steadily covering our existing customers. Final nitty gritties are being worked out. Soon we will be linking the wearables with the credit card as well so that the customers will be keen on using it more by availing of all the benefits through the credit card,” Mr. Kamakodi mentioned.
According to him, bank card is the one lacking product within the financial institution’s providing. Though the financial institution had tied up with SBI Cards for providing a co-branded card to its clients, it mentioned it was now gearing as much as have its personal bank card.
“We feel it is time to launch our own credit card,” he identified. “The general consensus is that the ratio between debit cards and credit cards issued by the bank is [in the range of] 3:1. We currently have 26 lakhs debit cards meaning that our customers should have around nine lakh credit cards,” he reasoned.
Credit progress for FY23 ‘should be in the low to middle double digits’, he mentioned. In the December quarter, the web non-performing asset ratio was 3.44%, in contrast 1.47% yr earlier. Mr. Kamakodi mentioned the financial institution aimed to deliver it down regularly to 2%
Source: www.thehindu.com
