Canara Bank Recovers ₹303 Crore from Rajesh Exports, CEO Discusses Growth Strategy
Canara Bank recovers over half of ₹500 crore Rajesh Exports exposure, CEO outlines growth strategy
Image: The Economic Times
Canara Bank has successfully recovered ₹303 crore of its ₹500 crore exposure to Rajesh Exports, with plans to recover the remaining amount through legal channels. CEO Brajesh Kumar Singh outlines strategies to improve profitability by increasing low-cost deposits and reducing the cost-to-income ratio.
- 01Canara Bank has recovered over ₹303 crore of its ₹500 crore exposure to Rajesh Exports.
- 02The bank aims to increase its current and savings account (CASA) ratio from 30% to 32% within a year.
- 03CEO Brajesh Kumar Singh plans to reduce the cost-to-income ratio from 48.4% to 45%.
- 04The bank has identified a ₹20,000 crore lending opportunity through the government's emergency credit line guarantee scheme.
- 05Canara Bank targets to increase the retail, agriculture, and MSME share to 65% from 60%.
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Canara Bank has recovered ₹303 crore of its ₹500 crore exposure to Rajesh Exports, as confirmed by CEO Brajesh Kumar Singh. The bank is actively pursuing legal remedies to recover the remaining amount. Singh noted that the exposure is fully provided for, minimizing its impact on the bank's financial health. He emphasized the need to enhance the bank's current and savings account (CASA) ratio, targeting an increase from 30% to 32% over the next year. Additionally, Singh aims to reduce the cost-to-income ratio from 48.4% to 45%, aligning with the performance of larger private sector banks. The bank has also identified a ₹20,000 crore lending opportunity through the government’s emergency credit line guarantee scheme, aimed at supporting businesses affected by supply chain disruptions. Furthermore, Canara Bank plans to adjust its retail, agriculture, and MSME loan share from 60% to 65%, focusing on sectors with better margins and lower risk. Overall, Singh's strategy is geared towards improving profitability and enhancing customer service through digital adoption.
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The recovery from Rajesh Exports and the lending opportunities identified are expected to enhance Canara Bank's financial stability and support local businesses.
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