Mumbai-headquartered SVC Co-operative Bank has drawn up plans to more than double its business (deposits + advances) to ₹70,000 crore in the next 3-4 years from ₹31,680 crore as at March-end 2022.
To this end, India’s second largest Urban Co-operative Bank (UCB) has initiated the process of migrating to “Finacle” core banking solution to handle larger business volumes and build digital offerings, and increase the proportion of retail loans within the overall loan portfolio, according to Managing Director Ashish Singhal.
“We want to increase our business to ₹70,000 crore in 3-4 years. Technology will play a very important role for us.
“So, we are currently in the process of migrating our core banking solution (CBS) platform to Finacle from our home-grown solution,” said Singhal, who took charge of the 116-year old bank on September 1, 2021.
Along with the new CBS, the bank is also planning to launch digital offerings for customers.
“While loan growth is an important parameter, it has to be risk-adjusted and come with increased profitability. We will always be prudent. We have 116 years of legacy and customer trust,” the MD said.
Singhal emphasised that within the overall loan book, the bank wants to have retail and wholesale (corporate and MSME) loans in equal proportion in 3-4 years. Non-retail loans accounted for about 78 per cent of the overall loan book as at March-end 2022.
To increase granularity of the loan portfolio and reduce the concentration of non-retail portfolio, the bank plans to step up unsecured loans and launch pre-paid cards and credit cards.
SVC Bank is likely to increase the number of branches to 300 in 3-4 years from 198 now (spread across 11 states) in a bid to more than double the business.