The Central Bank of India is expanding its agri lending portfolio through Aku Finance and has identified about 350 branches off the coast in rural areas.
“We are now moving into agri-related industries such as processing,” said MV Rao of the Central Bank of India. We have identified 350 branches on the beaches that we can only bring in Aku finance from rural centers, ”he said. Post Revenue After Bank Post June 2021 Post Quarterly Results.
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According to Rao, the bank is figuring out how to duplicate Agri’s portfolio.
He said the central bank will use its own finances in agri and agri processing industries, fruit and vegetable industries and acacia-based industries.
The bank said the loan to the sector was higher than expected.
Regarding the 40% of the total priority loan, the bank said it was 43.76 percent.
The agricultural sector accounted for 19.74 percent of the target, while the bank added 10.70 percent to 8 percent for small and rural farmers.
The state-owned lender will repay 70% of the total loan for RAM (Retail, Agri and MMA).
Going forward, we will balance our credit book by 70/30, which is 70 percent RAM and 30 percent corporate.
“Therefore, our RAM, which was 62.03 percent in June 2020, has now increased to 65.41 percent. “Due to a technical outage in March, there was a further reduction in corporate debt.” .
The lender, for its part, said it had entered into joint loan agreements with three NBFCs last month to expand loans in the housing and MSME sectors.
The bank is looking at opportunities to provide loans to the business community, which has recently been a priority for the government.
In July, MSME Minister Nitin Gadkari announced that he would bring retail and wholesalers under the priority sector.
Therefore, we feel that there is an opportunity in the business sector when the Ministry recently announced that it will bring traders under its priority sector.