Corporation Bank launches ‘festival bonanza’ for loan schemes

Corporation Bank will focus on the retail and SME (small and medium enterprise) segments to boost growth during the second and third quarters of the current fiscal.

Addressing newspersons at the launch of ‘Grand Festival Bonanza’ for various loan schemes here on Wednesday, Ajai Kumar, Chairman and Managing Director of the bank, said that there is a huge market in the retail and SME segments.

Stating that he is enthused by the performance of the bank without any promotional activity or cut in interest rates, he said the initiatives under the ‘Grand Festival Bonanza’ will increase the yield and give new current account and savings bank business. It is a multi-pronged strategy, he said.

The bank, which has 11 SME loan centres, will set up six more in the coming days. “These loan centres alone should give around Rs 5,000 crore business during the current financial year. The bank expects around 15-20 per cent growth in this segment,” he said.

For three months

K. Ramamurthy, General Manager of the bank, said the ‘Grand Festival Bonanza’ will be in force for three months from September 1. Under this, home loans under the floating rate will get a concession of a minimum of 25 basis points (bps) and vehicle loans 75 bps . The reduction will be 50 bps for other schemes such as Corp Vyapar and Corp Doctor Plus, he said.

Ajai Kumar said that the bank is planning to open five agriculture clusters.Loans against gold will also be a focus area, with the bank planning to set up 12 dedicated ‘gold loan shoppe’ at different locations, he added.

vinayak.aj@thehindu.co.in