Cosmos to meet RBI’s target for small sized loans at 50% loan book this year

economictimes.indiatimes.com:

Cosmos Bank is looking to meet the Reserve Bank of India’s target of maintaining 50 percent of its loan portfolio comprising ticket size less than Rs one crore this fiscal.

“ We are looking at meeting the RBI’s target of 50 percent of the banks loans portfolio at less than the ticket size of Rs one crore ib FY’2024-25” said Milind kale, the bank’ chairman of Cosmos Bank at a media conference in Mumbai adding that it would use its network of 179 branches to achieve this target.

Currently 43 percent of the bank’s loan book comprises loans below Rs 1 crore, Mr Kale said.

Among the business plans, the bank is not going to actively focus on more acquisitions in the near future. It has acquired 18 banks so far and added 90 branches to its network since 1999. it may at best add five to 10 branches this year provided it gets regulator’s approval, Mr Kale said.

The bank which was hit by cyber attacks six years ago plans to raise technology spends to up to 20 per cent of the profits, or 8-9 percent of operating expenses in 2024-25 and would cut costs by reducing expenses on human resources through more automation.

The bank is looking at deposit and credit growth at 15 per cent in FY’25, almost the same as FY’24

The bank earned a net profit of Rs 384 crore for FY’24, higher than its capital base of Rs 350 crore. It is using a part of the additional profits to distribute to its staff an equivalent amount of one month’s salary.