CBoP to focus on NRI, retail business in Kerala

Kochi, Sep 7: With the RBI approving the merger of the Kerala-based Lord Krishna Bank with the Centurion Bank of Punjab last week, the CBoP says it has aggressive growth plans for the southern state, focusing on NRI and retail business.

Addressing a press conference here last evening, CBoP Managing Director and CEO Shailendra Bhandari said the bank will launch ''compelling new products'' targeted at the emerging needs of customers across the state.

Following the merger, CBoP will now have 92 branches and extension counters, eight marketing offices, 24 ATMs and about 300,000 customers, supported by 950 employees, in Kerala.

''The combined entity has a balance sheet of around Rs 23,000 crore, with deposits of about Rs 18,000 crore, net advances of Rs 13,000 crore and total business of about Rs 31,000 crore. This includes Rs 1,000 crore in deposits and Rs 600 crore in advances in Kerala,'' Mr Bhandari said.

The customers of the erstwhile Lord Krishna Bank (LKB) will now have access to over 400 branches and 450 ATMs in about 180 locations across the country.

''We will leverage the synergies created by this merger and offer the finest banking products to the people of Kerala in the retail, SME, agricultural and NRI segments,'' he said.

Singling out the NRI and retail segments as of particular potential in Kerala, Mr Bhandari said the CBoP had good experience in managing NRI business in Punjab, which besides Kerala, accounts for a large inflow of NRI remittances.

Describing CBoP as one of the fastest growing new generation private sector banks in the country, Mr Bhandari said it was also focusing on wealth management services.

The bank plans to raise Rs 500 crore through the Qualified Institutional Buyers (QIB) route sometime soon, he said.

About the spate of protests by the LKB employees against the merger, Mr Bhandari claimed the opposition had died down. The bank had announced a one-time special increment for all employees, effective from the date of the merger, he said.

UNI