Strategic Priorities & Early Initiatives
It has been a few months since you took charge at the Central Bank of India. What are the initiatives you have taken so far?
We organised credit outreach programmes across more than 100 centres for retail, agriculture, and MSME sectors in separate weeks, generating strong business leads and growth in these areas. While corporate books remain dominant and preferred, we aim to balance them with retail, agriculture, and MSME segments.
We have opened nearly 84,000–85,000 bank accounts through just one programme. Going forward, our primary focus will be on agriculture and MSMEs. We have identified active clusters and 250 branches each for agriculture and MSMEs, and developed cluster-specific products. In agriculture, our focus is mainly on self-help groups.
Macro Tailwinds & Credit Growth
With significant economic measures like the GST cut and other developments, how do you view the overall scenario?
The overall outlook appears optimistic due to GST rationalisation, rate cuts, and income tax changes that have increased disposable incomes. This is reflected in our retail credit, which has grown 20% year-on-year.
We have seen robust demand for housing and vehicle loans. These policy actions have created strong opportunities in the retail segment. Demand for corporate loans has also picked up, and we now have a pipeline of roughly ₹85,000 crore to ₹1 lakh crore.
Consumption Outlook Beyond Festive Demand
Do you see this consumption trend sustaining even after the festive season?
Yes, without a doubt. This is a long-term trend. Corporate demand is rising with ample capex opportunities as the private sector invests, which in turn boosts retail demand.
These segments are interlinked, and I don’t see a slowdown in the near future. I expect similar growth in the corporate loan book as well. There is a renewed opportunity in private capex, with strong proposals coming in. I see significant prospects in renewables, roads, transmission, and hospitality, among others.
Global Developments & Customer Impact
Has the US tariff issue really affected your customers?
We have not seen any material impact or delinquency from the bank’s perspective. Many of our customers have diversified into other markets, effectively balancing out the impact of higher tariffs.
Interest Rates, Margins & Revenue Strategy
How do you see the impact of the December rate cut on your margins?
The rate cut has had a marginal impact on our margins this quarter.
However, in the March quarter, we expect a higher impact, since about 60% of our loan book is repo-linked and benefits pass through immediately to customers.
We are countering this by diversifying revenue through cash management services, non-fund businesses, and the sale of PSLCs</span> (priority sector lending certificates) to offset any profitability impact.
Branch Expansion & Network Strategy
What are your plans for branch expansion?
Our branch network is aligned with our business strategy. We plan to open more than 100 branches in FY26. It’s a continuous process—based on business requirements and presence, we will continue expanding our network going forward.