Business · India Bureau
South Indian Bank targets 16% credit growth in FY27 amid geopolitical headwinds
Private sector lender South Indian Bank is projecting 15-16% credit growth in FY27, with retail, agriculture and MSME advances expected to expand faster at 17-18%. The bank's festive season strategy focuses on these segments even as Middle East tensions pose downside risks.
LSN India ·
South Indian Bank is targeting 15-16% overall credit growth in FY27, buoyed by expansion in retail lending, agriculture and MSME advances, according to the bank's managing director and chief executive officer Mahesh Muralidhar Pai.
The RAM segment, which accounts for 61% of the bank's advances portfolio, is projected to grow at a faster clip of 17-18% during the fiscal year. Pai said the lender's festive season growth strategy will prioritize retail lending and gold loans within this segment.
"Our festive-season growth strategy is focused on the RAM segment, particularly retail lending and gold loans. I expect South Indian Bank's overall advances to grow by around 15-16 per cent, with the RAM segment growing slightly faster, at around 17-18 per cent," Pai said in an interaction on Friday.
The bank's gross advances surged 18.67% year-on-year to Rs 1,09,517 crore in the July-September quarter, compared to Rs 92,286 crore in the corresponding period last year. However, Pai cautioned that the growth projection is conservative given ongoing geopolitical risks, particularly the conflict in the Middle East, which could impact economic conditions.