Lakshmi Vilas Bank will expand its branch network extensively within 2020, according to the bank’s CEO Parthasarathi Mukherjee. He said branches will go to over 500 by the end of 2016-17 and should touch 750 by 2019-20, from 300 at present. Mukherjee, who took CEO post recently, has laid out an extensive 10-year plan to revitalise business. Vision documents for 2020 and 2026, named LVB 2.0, targets 20-25% annual growth for the next 10 years. Mukherjee said by 2026, the overall business, including advances and deposits, should be up to nine times higher than the current Rs 45,000 crore. The profit should be 15-20 times higher than the usual run rate. The bank will also focus on pushing the share of low-cost current and savings account deposits up to 25% by 2020 from 14.5% now, and to over 35% by 2026. As part of the strategy, the bank will bring down the composition of corporate loans to 25% from 42% now and will focus on the higher earning retail and SME loans. The cost to income ratio, which is currently 57% should be brought down to 45%, at par with the industry level by 2019-20, he said.
