Corp Bank to up focus on MSMEs, unbanked areas

Corp Bank to up focus on MSMEs, unbanked areas

Corp Bank to up focus on MSMEs, unbanked areas

Underlining the bank’s commitment to the micro, small and medium enterprises sector, Corporation Bank officials on Wednesday said that the bank was keen to continue focussing on helping the sector grow and opening branches in unbanked areas.

Speaking at the inauguration of the bank’s new branch in Bangalore, Chairman and Managing Director S R Bansal said, “Last year, the bank’s growth in the MSME sector was 30 per cent and this year we propose 40 per cent growth. This sector has potential and we hope to help it grow.”

Bansal said that the bank had opened 314 branches in the previous year and intends to open 500 new branches soon.

“Of the 314 branches we opened, 111 branches are in unbanked areas. RBI says that banks should have at least 25 per cent of branches in unbanked areas, but we surpassed that last year. The focus on these unbanked areas will continue as viability comes earlier and cost is much less.”

“We have 33 zones throughout the country and the bank’s aim is to open 20 branches in each zone,” he added.

The branch, along with a ‘24 x 7 e-Lobby’ was inaugurated on Wednesday by Karnataka Government, Additional Chief Secretary, Commerce and Industries Department, K Ratna Prabha.

On overseas branches, Bansal said, “As of now we have two representative offices in Dubai and Hong Kong. RBI has stopped granting provision to open overseas branches for now. When they begin granting permission we will appeal for a branch abroad.”

Net non-performing assets (NPAs) of the bank for the quarter ended June 30, 2014 stood at Rs 3,694.244  crore as compared to Rs 1,900.34 crore in the corresponding period last year, marking 94 per cent increase.

On NPAs, Bansal said, “NPAs are a concern for all owing to the economic scenario, but I feel that the amount can be brought down with due diligence, which is what we have being doing and what we will continue to do.”