The public sector bank, Corporation bank, has planned to expand its presence in rural areas in order to grow its farm loans portfolio. It is to be noted that the bank has not met the lending norm of 18 percent till now. At present, its agri-loans portfolio stands at 6 percent which is even lower than last fiscal's 8.72 percent.
Talking on this matter, the Chairman and Managing Director of the bank, Mr. Ajai Kumar said, "We would like to raise the share of rural branches to 25 per cent (by March 2013) and increase farm lending." The bank has only 20 percent of its branches in rural regions, with skeletal presence in India's farming center of Uttar Pradesh and Punjab.
The bank has planned to open 300 bank branches in the current financial year, with almost half of them being situated in the rural areas. Adding that the bank is facing a manpower shortage, Mr. Kumar further said, "The problem is who will go to run these branches."