Private sector Federal Bank has announced the opening of 100 new branches to expand its banking services. The bank has said that it is focusing on giving loans to small enterprises, so that the business of small enterprises can expand. At the same time, Federal Bank is also coming up with co-lending model and for this, negotiations are going on with many fintech firms regarding agreements.
Federal Bank, the largest private sector lender in Kerala, has confirmed that it will open 100 more branches this financial year as part of its increased focus on providing credit to small businesses. The Kochi-based bank had opened 75 branches in the last financial year.
Federal Bank Executive Director Shalini Warrior said that by June 2023, one-third of the total loan book of Rs 1,86,593 crore, which has increased by about 21 percent on an annual basis, was SME loans. The idea of focusing on SMEs is that we should move towards those sectors of the economy which are growing faster or which require more credit.
The Executive Director of Federal Bank said that in terms of credit, SMEs are at the forefront of the fast growing industry segment. He said that ‘the focus will be on opening more branches in this financial year also. According to him, most of these branches will open in Tamil Nadu, where it already has 200 branches. Apart from this, there are also branches in Karnataka, Andhra Pradesh and Telangana.
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