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Bank to raise corporate business

Bank to raise corporate business
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Bank of Maharashtra aims to increase the share of corporate sector in its overall business to 50 per cent this financial year from the current 42 per cent.

The bank’s corporate business expanded from 37 per cent in the first half of the year to 42 per cent. Executive director CVR Rajendran said as the bank was a small-sized one, it was possible to take sanctions and approve loans faster, and this would work in its favour. For this reason, big corporates are willing to consider the bank for their additional loan requirements, he said.

Of the bank’s total advances, retail segment accounts for 11 per cent, agriculture 11 per cent, the micro small and medium sector 25 per cent and housing loans to non-banking financial companies 16 per cent.

The bank’s total deposits stood at Rs 86,542 crore, while total advances stood at Rs 64,778 crore as on September 30. The bank was seeing a selective revival in credit demand from manufacturing and real estate companies, a top official said.

As of September-end, its gross non-performing asset (NPA) ratio stood at two per cent, against 2.15 per cent last year. The bank’s net NPA ratio fell from 0.97 per cent to 0.88 per cent in the same period.

To boost its home loan portfolio, the bank is considering tying up loans to real estate projects with home loans.

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