IDBI Bank saw a marginal decline in its overall advances in 2017-18, but the growth in retail asset portfolio of the bank was broad-based in all sub-segments. The bank had made conscious effort to boost the share of its retail and priority sector lending (PSL) portfolio in the total advances as a part of its business strategy to rebalance the business mix. The bank’s strategic initiatives saw increase in the share of retail advances to total advances rise to 45% yoy at end-March 2018, with corresponding decline in the share of corporate advances. In an interaction with Banking Frontiers, Dr S.S. Banerjee, ED of the bank, says while the overall advances declined by 6% on a yoy basis in 2017-18, the structured retail asset portfolio and the PSL portfolio grew by 15% and 5%, respectively, yoy. The bank also achieved all its regulatory targets for PSL, including sub-targets for agriculture, SFMF (small farmers and marginal farmers), weaker sections and micro credit in 2017-18.
The bank’s structured retail asset portfolio grew 15% on a yoy basis in 2017-18 as compared to 7% in 2016-17. The highest growth was registered in auto loan (30%), followed by personal loans (27%) and loan against property (26%). Banerjee says home loan segment, which accounts for 70% of the structured retail asset portfolio, grew by 11%. The bank’s education loan portfolio grew by 10% during 2017-18.”
The bank has continued to introduce new products and review the facilities /processes of existing products. In consonance with its strategy to progressively increase the share of retail and PSL in the asset portfolio, the bank offers an array of structured retail asset and PSL products. During the year, the bank also introduced 6 new area-based cluster products for the MSME segment – leather footwear/leather products in Agra, tiles and ceramic products in Morbi, Rajkot, auto components in Chennai, bicycle/bicycle parts/machine tools/fasteners in Ludhiana, pharma in Hyderabad and fabrication, engineering, electrical and auto ancillary in Okhla, New Delhi.
– Manoj Agrawal, Group Editor, [email protected]
