Karur Vysya Bank MD says corporate loan growth will be lower than retail and agri segments

Karur Vysya Bank reported strong quarterly earnings results for the April-June quarter. The bank reported more than double growth in its net profit to Rs 229 crore for the quarter, led by higher interest income and improved interest margin.

Aiding from that Karur Vysya Bank's management expects to get a 15 percent loan growth for the financial year 2023, B Ramesh Babu, MD, Karur Vysya Bank told CNBC-TV18.

“Agriculture, retail and commercial, are the focus areas and corporate also - in our case, the corporate is considered a mid-corporate. So we are growing there also, at a lower level we grow there and the rest of the three will be growing at 15 percent. That's a plan of action,” he added.

On the growth in Net Interest Margin (NIM), he expects it to stand at 3.75 percent for the year. For the April-June quarter, Karur Vysya Bank's NIM rose to 3.82 percent from 3.55 percent in the corresponding period a year ago.

In terms of gold loans, he said, that the majority of the gold loans are coming from the agriculture sector.

“Around the 16 to 17 percent we are growing in the gold loans and much better than the earlier years,” he said.

The retail segment also offers good gold loan scope. The bank is trying to have structural changes there also because the yields are relatively better, in a methodical way we want to go for the next quarter, we are going to plan for that, added Babu.