Check Out The Federal Bank MD's input about the unsecured retail segment

31 Jul 2023 , 02:43 PM

Federal Bank’s CEO, Shyam Srinivasan, reveals plans to expand the unsecured retail loan portfolio in the coming years, aiming for 10 % growth from 3 to 4 %, to an interview with Moneycontrol.

The International Finance Corporation’s (IFC) increasing stake in the bank is expected to boost the solar and renewable portfolio. In the April-June quarter, Federal Bank achieved seasonally good and broad-based growth across all segments.

The bank is actively diversifying its microfinance portfolio across 11 states and plans to expand to other states.

Federal Bank’s corporate portfolio witnessed significant growth, with sectors like solar and renewable showing strong performance. Funds raised from a recent QIP of Rs 3,000 crore will support the bank’s growth plan over the next three to five years, per the information.

The gold loan portfolio constitutes 10-11 % of the bank’s total loan book, and margins have slightly decreased to 10-11 %. Federal Bank aims to maintain a balanced retail and unsecured loan mix, cautiously managing potential risks.

The bank is among those participating in the pilot for the Central Bank digital currency (CBDC), acknowledging its potential, but believes widespread adoption will take time

For feedback and suggestions, write to us at [e-mail]