BUSINESS
It can be noted that the slowdown in corporate demand in the last few years has led to a lot of banks focusing on retail segment.
Even as big-ticket loan demand continues to be tepid, private sector lender Kotak Mahindra Bank is confident of maintaining up to 20% growth in corporate loan book this financial year.
"We would be able to sustain our corporate credit growth of 15-20% this year as well. This is possible because of the comparatively lower base," bank's president for corporate banking KVS Manian said.
The demand will be split evenly between term loans of slightly longer duration as well as working capital loans, he said, adding the bank has a bias towards taking balance sheet-led term-loan exposures wherein it sees a company's balance sheet strength to service the debt.
It can be noted that the slowdown in corporate demand in the last few years has led to a lot of banks focusing on retail segment.
Manian acknowledged that the demand is slower and attributed it to the sluggish economic growth due to which greenfield projects are not coming up and also disintermediation, wherein better-rated corporates are going to money market alternatives to raise money rather than from banks.
The bank has not revised its conservative approach when it comes to segments like infrastructure which have reported problems in the past, he said.
When asked if the newly-started vertical focusing on large corporates will help drive loan growth, Manian said the corporate and investment banking vertical is not aimed at loan growth alone.
The vertical is for focusing on the needs of a large corporate across financial services and will also help the bank earn fee income through services like debt capital markets and investment banking, he said.
On his expectations of revival in large ticket loan demand, Manian said it will come in the final quarter and will be driven by an improvement in the sentiments.
"Optimistically, it can happen in the December quarter, but otherwise, I feel it will happen in the fourth quarter," he said.
Kotak Bank had recently cut its base rate by 0.10%, taking its cumulative cuts to 0.25% during the fiscal.
When asked if he fears losing business to larger rivals like ICICI Bank, HDFC Bank and SBI who have lower base rates, Manian replied in the negative, saying Kotak Bank can compress its spreads over the base rate to book loans.
Raima Sen mourns Bharat Dev Varma's demise, pens emotional note for 'great father, great husband'
DNA TV Show: Ahead of Maharashtra poll results, MVA, Mahayuti engage in resort politics
Maharashtra: Stage set for assembly poll results; Mahayuti, MVA confident of their victories
All set for vote counting in Jharkhand tomorrow; NDA, JMM-led alliances confident of winning
Watch: Australia star inquires Rishabh Pant about his next IPL team, gets 2-word reply
Shah Rukh Khan’s house Mannat was first offered to his industry rival…, but he refused because...
The Visionary Who Promises a Blue Sky for India: Holger Thorsten Schubart’s G20 Climate Speech
The Surge of High-End Living: Luxury Residential Market to Outpace Other Segments
FeFCon 2024 to be Held in Bangalore: A Premier Event on Fever Management
'That’s wild': Noida man turns cigarette butts into teddy bears in viral video, watch
London Airport evacuates passengers over security threat, thousands stranded
The World’s First Innovative Iron Supplement to Combat Iron Deficiency and Anaemia
Meet grandmother who became fashion icon after trying on her granddaughter’s clothes
IND vs AUS: Rishabh Pant joins Virat Kohli, Rohit Sharma in elite WTC list, becomes 3rd Indian to...
'All scripted drama...': Puneet Superstar allegedly assaulted by influencers in viral video, watch
Actress Ana de Armas caught kissing Cuban President Miguel Díaz-Canel’s son in viral photos
Oreshnik's Shadow: Will Russia's hypersonic missile force west to back down?
‘You’re So Beautiful’: World’s tallest woman meets world’s shortest woman over tea, pics go viral
Delhi-NCR Air Pollution: Consequences of GRAP-4 are drastic, may have adverse effects, says SC
Delhi-NCR Air Pollution: Schools likely to stay closed till..., check city-wise update
Maharashtra: 3 killed, 9 hospitalised after gas leak at fertiliser plant in Sangli
THIS farm is selling a cup of coffee for Rs 28000, but there's a twist, it is...
Chhattisgarh: 10 Maoists killed after encounter with security personnel in Sukma
Mukesh Ambani's SUPERHIT plan for Jio users, offers unlimited 5G access for 1 year for just Rs...
IND vs AUS 1st Test: KL Rahul's dismissal sparks DRS controversy in Perth Test
Dense fog, heavy rain predicted in these states till November 25; check here
Oreshnik Hypersonic Missile: Which nations are within its range?
Bihar teacher, principal reach school in drunken state; know what happened next
'I have faced a lot of...': Arjun Kapoor REVEALS his biggest fear amid break up with Malaika Arora
How millions of Indians may get affected due to US indictment of Gautam Adani in bribery case
Amid divorce rumours with Aishwarya Rai, Abhishek Bachchan says 'missing someone is okay but...'
After Bibles, watches and sneakers, Donald Trump is now selling autographed guitars, price is...
Delhi pollution: Air quality improves to ‘very poor’ category, AQI at...
Vladimir Putin's BIG threat, warns he could strike UK with new ballistic missile if...
Shillong Teer Results TODAY November 22, 2024 Live Updates: Check winning numbers here
Somebody misbehaved with Alia Bhatt on Highway sets then Imtiaz Ali had to...
Zomato CEO Deepinder Goyal reveals twist behind Rs 200000 job fee, closes application window
Days after Ratan Tata's demise, Tata Group's Rs 131000 crore company inks pact with ADB for...