Confident of maintaining 30-35% growth guidance going forward
Vishwavir Ahuja, MD & CEO, RBL Bank
Apr 26, 2019 | Source: Livemint
On guidance for coming quarter: Mr. Ahuja, MD & CEO of RBL Bank said that the bank continues to stand by its guidance for one year ahead. He said, the bank will continue to grow at 30-35% growth going forward into the next year. According to him, all other parameters will stack up according to that growth and to the kind of guidance that is given. He said, parameters like improved financial metrics, improved ratios, improved current account savings account, improved return on assets, improved return on equity and so on will align to the guidance given. While we are still to put our next medium-term, long term plans in place, I do think that we are not going to change our forward guidance. If anything, we expect to maintain 30% plus growth in the medium-term to longer-term.
On reporting a healthy 25% growth in wholesale lending: In terms of a breakdown on the wholesale side, the larger corporate side performed at a faster growth than the SME, mid-corporate. The MD & CEO of RBL Bank said, the bank was cautious in the SME, mid-corporate space, because according to him the overall credit environment was patchy in the country. While the bank wants to grow both the businesses it was prudent to take a cautious call in the challenging times and thus it was better to deal with the safer larger companies where RBL Bank’s ability to deepen and widen the relationships became much easier. The bank has acquired a greater level of credibility with the large corporates. RBL Bank’s ability to deal with them on scale and on a wider range of products and services has increased tremendously and as in the competitive scenario some others were not up to the mark, He said, that he thinks the bank’s relative position has improved. So all these strategies have helped it gain greater traction in that (larger corporate) space. That is where the wholesale growth came from. On the retail side, the micro grew.
On similar growth expected in corporate and retail for FY2020: Mr. Ahuja, said the bank will on the corporate side hopefully see a slightly better growth as the mid-market, SME segments also start contributing more to the growth. A 25% growth on the large corporate side— should be good according to him. Additionally he mentioned that the bank doesn’t want to take more risk on the SME and mid-market segment but will certainly look to grow more than 25%. On the retail side, 40% plus growth is possible in the CEO & MDs view.
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