Search
Karur Vysya Bank change business model to boost growth
June 21, 2023
Home loans, loans against property and personal non-agri jewel loans would be the major segments in retail while the bank would continue to ensure momentum in agri-gold loans, says KVB MD and CEO B. Ramesh Babu.
Private sector lender Karur Vysya Bank Ltd., (KVB) has started making changes to the model of its business to sustain growth momentum, MD & CEO B. Ramesh Babu said.
“We are a 106-year-old bank and has been paying dividends continuously, except for the COVID-19 year due to RBI advisory,” Mr. Babu told the media. “For the last two years, we have started making changes on the asset and liability sides.”
“Earlier, only the branch used to be the main channel for mobilising loans or deposits. Now, we are adding many channels. We have created a retail liability sales force for mobilising Current Account, Savings Account (CASA),” he said.
Named ‘Feet On Street (FOS), the bank, on a pilot basis, has employed 500 people in the last three months with plans to recruit 800 more in 18 months. Their main job would be to focus on acquiring new accounts, servicing existing customers and make recoveries. If things go as planned, the FOS would be rolled out pan India.
On the asset side, the bank would focus on commercial, RAM (Retail, Agri, MSME) sector (current share of business is 79%) and corporate sector (21%). On the liability side, the lender would make efforts, through the FOS, to improve CASA, corporate salary accounts, government business and marketing of third-party products.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://ask.careers/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/
- Mumbai: https://ask.careers/cities/mumbai/
- TSCFM: https://ask.careers/institutes/tscfm/
