Restoring the premium position of Central Bank of India amongst PSU banks is top on the agenda of its new Chairman and Managing Director, Mr M.V. Tanksale.
Branch expansion, extensive hiring to infuse young blood into its manpower, leveraging on technology and expanding its global footprint are all part of the roadmap chalked out by him. “Above all, we will be focussing more on relationship banking than mere transaction banking. We will also be increasing our productivity levels in terms of business per branch by leveraging new technology,” he said in an interview with Business Line.
From being the top PSU bank in the 70s, the bank began to lose out to others in the subsequent decades — it is today the sixth largest PSU bank, behind peers such as Punjab National Bank and Union Bank of India. In the last quarter, it posted a 16.62-per cent dip in net profit to Rs 281 crore.
It is, however, in the third position in terms of branch network, with 3,800 branches across India doing a total business of Rs 3,10,000 crore. “We will be adding about 200 new branches this fiscal to cover all the districts in the country. Today, we are present in about 90 per cent of the districts,” Mr Tanksale said.
HIRING
One of the ills affecting the bank has been its ageing manpower. To reverse this, it plans to go on extensive hiring. “This fiscal, we will be taking on board 5,000 personnel, including 2,000 officers. And next fiscal, the hiring will be more,” he said.
The bank's cardinal focus will be on retail banking, including home and personal loans. “Retail business today accounts for about 11 per cent of our total business. We aim to take this to 15 per cent in the next two years,” he pointed out. He sees a two per cent increase in credit growth at 20 per cent this fiscal.
NEW PRODUCTS
Central Bank plans to introduce new products that will be tailor made for its retail customers. “Only a few days ago we decided to launch a new product, Cent Double, which will ensure doubling of a certain amount of deposit within a stipulated time. We are yet to work out the rate (of interest) and the time frame,” Mr Tanksale said.
The bank will simultaneously expand its global footprint. At present, it has a presence in Zambia. This fiscal it plans to open a representative office in Nairobi and will subsequently enter Mozambique. “Later, we will expand into West Asia through Dubai and Hong Kong,” he said
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