“We are targeting 18-20 per cent growth in total advances in FY27. Our advances grew by around 16 per cent last fiscal, and we believe moving to 18-20 per cent is achievable with our existing teams and systems,” Ramesh Babu, managing director and chief executive officer of the bank, told PTI in an interview.
RAM (retail, agriculture and MSME) loans account for 86 per cent of the bank’s advances, while makes up 14 per cent. The bank intends to step up corporate lending but cap high-value loans at around 20 per cent going ahead, Babu said, adding that it will avoid large-ticket exposures and be selective in consortium lending.
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In the July-September quarter, the bank reported 20 per cent year-on-year growth in gross advances to Rs 1.1 lakh crore, up from Rs 92,185 crore in a similar quarter last year.
The bank is targeting corporate lending opportunities in commercial real estate, trade, food processing, spinning mills and transport, while selectively financing non-banking financial companies (NBFCs). Its NBFC exposure has declined to around 4 per cent of the loan book from over 8 per cent earlier.
On the deposit side, KVB has stepped up mobilisation through dedicated sales channels even as customers shift savings balances to term deposits. Its cost of deposits stood at around 5.49 per cent, the CEO said.
He expects to remain relatively stable over the next two to three months, supported by comfortable liquidity and FCNR(B) inflows.
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However, he said, transmission of rate hikes will be deferred due to higher liquidity. The bank has mobilised around Rs 680 crore through such deposits.
are expected to remain a key growth driver, supported by lower borrowing costs at banks compared with NBFCs.
The bank does not expect significant stress in its gold loan portfolio over the next six to eight months despite concerns over deficient rainfall. It is monitoring and initiating margin calls where required.
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