The public sector lender, Bank of Maharashtra, has announced that due to increase in defaults in the corporate sector lending, it will shift its focus from retail segment to corporate segment. The increased focus is aimed at taking steps which will boost business in the corporate segment and bring more corporate customers to the bank.
Talking on the matter, the Chairman and Managing Director of the bank, Mr. Narendra Singh said that the bank plans to change its loan composition and grow its corporate loans book. The bank has seen 42 percent growth in corporate business in the first six months of this fiscal and it plans to increase it to 50 percent this year.
At present, the bank's retail segment loans book forms 11 percent of the bank's total sanctioned loans, agricultural loans account for 11 percent, loans to small and medium enterprises form 25 percent and home loans to non-banking finance institutions accounts for 16 percent of the bank's total advances. Mr. Singh added that the bank was witnessing a revival in demand for loans from selected segments such as from manufacturing and real estate companies.
To accelerate growth in its housing loans segment, the bank is contemplating tie-ups with real estate companies for tying up advances provided to real estate projects with home loans. For this, the bank is providing loans to real estate clients at lower rates if they get them home loan borrowers.