Though its CASA (current account savings account) levels are still a concern, Corporation Bank hopes to grow its CASA to 28-30 per cent by March 2011. “Our savings bank account is growing very fast, but the current account is an issue. It is not growing as expected, but I am sure we will be able to get a substantial level by the end of this quarter,” Mr Ramnath Pradeep, Chairman and Managing Director, Corporation Bank, told Business Line. The bank's CASA is currently at about 24 per cent.
According to him, the bank has been making efforts to grow its CASA, and hoped they would bear fruit soon. Corporation Bank has already started a CASA campaign, and launched “Operation Outreach” too, to open bank accounts for those who do not have any currently. “This will give us substantial number of accounts and also an average of not less than Rs 5,000 to Rs 10,000 per account,” said Mr Pradeep. The bank has launched this campaign across the country with road shows, and meeting people one-to-one.
On the credit side, its retail portfolio has registered a 27 per cent growth to touch Rs 2,785 crore as on September 30, 2010. The bank received good response for the festival offer for retail loans that was launched in September, he added. The bank, which had targeted Rs 1,000 crore through the four-month-long offer, has already touched Rs 754 crore of retail credit in the two months since launch, he added.
“In another two months, we will be reaching a total of Rs 1,500 crore of retail credit through the offer,” said Mr Pradeep.
Though the bank will stop its teaser loan rates from December 1, he hoped the bank will be able to maintain the momentum. “We are trying to adjust the rate of interest, and so it will be the same rate of interest up to five years, five years to 10 years, 10 years to 20 years.”
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