Loan Sanctioning a key to Asset management : Corp Bank
By Vaibhav Aggarwal
Aug 13, 2012
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Corporation Bank Chairman and MD, Mr. Ajai Kumar thinks that banks can control the rising load of nonperforming assets (NPA) by better monitoring of loan sanctioning. He further added that opening of small medium enterprises (SME) loan centres and retail asset hubs is vital to improve asset quality.

Mr. Kumar also announced that the bank's NPAs in retail segment were brought down substantially through sanctioning made from the four retail asset hubs of the bank. He was present at the launch of the 10th SME loan center of the bank.

He pointed out that loans sanctioned out of branches had higher tendency of turning bad. "When we entered the retail hub concept, we followed assembly-line method. Under this, four-five persons see the paper and give their inputs. This helps in taking caution with loan proposals." he added. Furthermore, zero percent of loans sanctioned from retail asset hubs turned NPAs.

SME loan centres are vital in a way that they understand the needs of SME clients in a better way, and the loan sanctioning is more streamlined, compared with the branch level banking finds it difficult to understand the needs of the SMEs.

Mr. Kumar also announced bank's expansion plans in the states of Gujrat, Haryana, Jharkhand, Odisha, Punjab, Rajasthan and West Bengal. The bank also sanctioned loans for various SME units at the launch of the SME loan center in Mangalore.

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