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What will be your key focus areas at Canara Bank?

The bank is doing well in terms of business growth, but there is room to improve efficiency parameters. Our CASA ratio is around 30 per cent, while some peers are at 40 per cent. Similarly, our net interest margin can improve. My first priority is on the resources side, raising low-cost deposits and improving CASA, which will strengthen overall efficiency.

Do you have a CASA target in mind?

Our immediate endeavour is to increase CASA from around 30 per cent to 32 per cent. Over the medium term, we would like to take it to about 35 per cent. The idea is to reduce dependence on bulk deposits and build a more stable retail deposit franchise.

How do you plan to attract younger customers?

The younger generation wants banking services delivered differently. They are comfortable doing everything digitally and rarely visit branches. I want Canara Bank to become the preferred bank for this generation. We need to make banking seamless, convenient and relevant to their needs.

How much is Canara Bank investing in technology and digital capabilities?

Technology is already one of our largest areas of expenditure. We spend around 10 per cent of our total annual expenditure on technology, making it the second-largest cost head after employee expenses. That investment will continue to increase. We have built more than a hundred digital journeys across mobile and internet banking.

Household savings are increasingly moving towards investments through platforms such as Zerodha and Groww, while fintechs and NBFCs are also expanding aggressively in areas like MSME lending. Do you see this as a challenge for traditional banks?

The bigger change is not fintechs entering the market; it is the changing preference of customers. Younger consumers are increasingly shifting from saving to investing, and their risk appetite is much higher than previous generations. Fintech platforms have made investing far easier and more accessible through seamless account opening, research tools and integrated banking and demat services.

I do not see fintechs as competitors. In many areas, they are collaborators. Several fintechs support banks in areas such as digital onboarding, land records verification, legal searches and customer acquisition. We also work with them in lending and other digital journeys.

Even in MSME lending, there is enough room for different players. Some fintechs focus on unsecured loans, while banks continue to play a significant role in secured lending and larger-ticket financing. We also lend to some of these institutions and, in certain cases, acquire loan portfolios from them. The opportunity is large enough for both banks and fintechs to grow together.

Rajesh Exports has been in the spotlight following SEBI’s interim order. Canara Bank also has exposure to the company. How do you view the recovery prospects?

The residual exposure of Canara Bank to Rajesh Exports is meagre compared to the total credit facilities extended. The exposure is fully provided for and is recoverable.

The residual exposure is not expected to have any significant impact on the bank’s balance sheet or financial position.