What goals did you set for the bank when you took over the reins on September 30, 2025?

In terms of our branch presence and business market share, there is a gap of about ₹4 lakh crore... So, to gain market share, we are using data analytics to determine the potential of our branches and ways to optimise business. We want every business unit to contribute to growth.

We can grow faster, but the main constraint is the capability of our people. Our staff needs capability building as, during the period the bank was under the RBI’s Prompt Corrective Action (from 2017 till 2022), they did not get opportunities to take decisions on the credit side or get exposure to segments of business like their peers did in other banks. The late-millennials and early-GenZs who joined our bank are very good. They have a great potential to lead our bank in the future.

Our officers should be in a position to handle infrastructure projects and projects in other emerging areas (for example, green energy). Towards this end, the bank will have in place 1,000 credit officers by training existing ones and via lateral recruitment.

The guidance we have given to the market is that our business growth will be 15-16 per cent every year. With this growth, I am sure our total business will touch ₹10 lakh crore by March 2028.

We are re-balancing the RAM-corporate loan mix. I think, it will change to 65-35, plus or minus 5 per cent, by March 2027, from 72-28 now. This will give us an opportunity to grow CASA (current account, savings account) deposits and retail business.

The bank is planning to create a sales and marketing team. Our technology (including mobile and internet banking, and IT infrastructure) and people are aligned to meet customer requirements.

So, activating our branches, process simplification, capability building in functions such as credit, treasury, sales, and technology are the immediate priorities we are working on.

What steps are you taking to achieve the goals?

The first thing I did after joining the bank is laying emphasis on faster decision-making. So, the credit approval committee meets once a week (every Wednesday) for new business growth. This has been replicated at all levels — executive directors’ committee, chief general managers’ committee, zonal manager and regional level committees. This is a confidence-building and enablement measure for the field, as it drives home the message that the bank will give decisions to customers in the shortest possible time on the credit proposals canvassed by them.

We are in a buyers’ market. Customers, be they retail, MSME or corporate, have multiple options. They want decisions very fast. So, our turnaround time should be reasonable. We have to walk the talk. And this I started from my desk. When there is faster decision-making, customers’ confidence in the bank increases. This is very important for remaining relevant and giving satisfaction to customers.

The second thing we did was to conduct outreach programmes to activate the field and branches.

On November 14, 2025, we organised an agriculture outreach programme at 100-plus locations. This was followed a week later by an outreach programme for MSMEs at 100-plus locations. On November 28, we organised a retail outreach programme at 100-plus locations. A great number of leads were generated through these programmes.

The third thing we did was to revise products segment-wise, both on the assets and liabilities side. On the liability side, we revised products for senior citizens, students, farmers and salaried customers to cater to their specific needs. On the assets side, we identified active branches in clusters — 250 MSME-focused branches and 264 agriculture-focused branches — and devised products specific to the clusters.

Hand-holding and capability building of our officers is very important. We are training the staff in these branches to focus on these products, better assess customers’ fund and non-fund base and cash management service requirements, and give them immediate response. We are ensuring adequate staffing at these branches so that they become nodal points to generate business in the coming days.

Since our bank is very old, we had a lot of complicated processes. So, we undertook process simplification. For example, in the case of account opening, we are providing customers a pleasant onboarding experience and, after that, superior banking services. These are some of the strategic ways in which we will grow.

Your CD ratio is modest. What steps are you taking to push it up?

Our CD ratio is at about 66 per cent, CASA is at about 47 per cent (of total deposits); and 65 per cent of our branch network is in rural and semi-urban (RUSU) areas. We have a strong presence in Madhya Pradesh, Maharashtra, Bihar, and Uttar Pradesh, among other regions. We have a pan-India presence with 4,556 branches. This puts us in a position to meaningfully support the India growth story.

Though the CD ratio is modest, it actually presents a great opportunity for our bank to expand its credit base. While some of our peers are struggling for resources (deposits), this is not a challenge for us currently. People have trust in our franchise, our brand, and they are keeping money with us. The CD ratio should go up to 71-72 per cent by March 2026, and 75 per cent by March 2027.

The RAM portfolio is the strength of our bank, due to its predominant RUSU presence. Our retail growth is about 18 per cent; MSME growth is about 14 per cent; and agriculture growth is about 12 per cent.

Also, if you consider the priority-sector lending target, we achieved 56 per cent against the 40 per cent mandate. The sourcing of loans under this category is mostly from the branches. We have a co-lending book of about ₹14,000 crore. This portfolio will grow to about ₹18,000 crore by March-end.

Will your bank be able to sustain the current asset quality?

Our gross NPA (non-performing assets) and net NPA are at 3.01 per cent and 0.48 per cent, respectively. And the provision coverage ratio is also at 97 per cent. So, the asset quality is robust now. However, since asset quality is cyclical, we have taken a number of steps to ensure it stays healthy.

We have established a dedicated war-room, with early warning system capabilities. So, the propensity to default is identified at an early stage. Further, feet-on-street model is integrated with this. A loan account will be opened only if there is a NACH (National Automated Clearing House) mandate or SI (standing instruction). On the credit underwriting side, we have implemented a simple software, which is integrated with the loan origination system, for filtering loans. It tells us whether a loan is “go or no go”. This way there is a strong check on the selection of borrowers.