Our institutional holding is broad-based, not acquisition target any more: Srikrishnan H, Karnataka Bank
Mangaluru-headquartered private lender Karnataka Bank bets big on technology to drive its business growth. Bank’s MD & CEO Srikrishnan H shares his views on the bank’s future in a chat with ET’s KR Balasubramanyam. Edited excerpts:
Karnataka Bank was started with the goal of responding to the needs of the agriculture sector. In the crowded space of present-day banking, how do you see the bank’s future?
Our bank adopted an agri- lending model on a large scale much before the regulations on priority sector lending kicked in. We will continue this legacy as we enter the next 100 years with continued focus on rural, agriculture, MSME and retail business. We are implementing technology-based deliveries in each of these verticals.
Of late, your bank has been signing up with insurers and NBFCs to cross sell their products. How big is this opportunity?
Traditionally, branches have been the primary channel for originating business. Over a period, customers come to expect multiple financial products and services under one roof. This has led to banks partnering with others to offer third party products. We are looking to expand customer offerings through collaborations for co-lending, investments, insurance, and payment products. We believe that these partnerships will make up about a third of our business, going forward.
How comfortable are you with the capital at hand?
While we maintain a very healthy capital adequacy ratio, we have been judiciously churning tier-2 capital that was quite expensive. We have a follow-up
