“Gold loans require infrastructure for storage so we would be investing for the same in the upcoming financial year,” he added. KOTAK MAHINDRA Bank’s head of commercial banking Manish Kothari said the bank is aiming to cross the 1 lakh crore mark in doing business in the upcoming financial year. The bank has been reporting robust growth in all verticals, Kothari told The Indian Express.
The commercial banking sector comprises agricultural tractor, commercial vehicle, construction equipment finance, microfinance, gold and crop loans. This segment accounts for 23 per cent of the bank’s advances. According to the bank, Non-Performing Assets (NPA) in the commercial sector stand at 0.43 per cent.
The low NPA, Kothari said, was of the due diligence of the bank in customer selection which helps in preventing slippage.
When it comes to commercial vehicles, Kothari said the bank is the fifth largest player in the sector and around 8-9 per cent of the market share in medium heavy and light commercial vehicles is cornered by the bank.
He was optimistic about the medium and heavy vehicles sale.
Gold loans, Kothari said, were mostly handed out against ornaments and documents. The category sees equal participation of urban, semi-urban and rural customers, he added.
“Gold loans require infrastructure for storage so we would be investing for the same in the upcoming financial year,” he added.