The 111-year-old Central Bank of India was at one time the worlds largest nationalized bank and the first Indian bank to issue credit cards . Matam Venkata Rao, MD & CEO, took over the RBIs PCA program in March 2021 .
Mumbai (India): The 111-year-old Central Bank of India was at one time the world's largest nationalized bank and the first Indian bank to issue credit cards.Since liberalization, the bank had lagged and emerged as the first to escape the RBI's lending restrictions on September 20.In an interview with Matam Venkata Rao, MD & CEO who took over the RBI's PCA program in March 2021, outlines his future for the bank.Now that we've gone back to our drawing board and looked at the reasons that have triggered this change, he said.When people were reluctant to get vaccination, we increased operational efficiency, such as our Immunity Deposits.We have a home loan for women that is 20 basis points (100bps = 1 percentage point), and have built up a portfolio of Rs 3,800 crore in four and a half months.For lending, we partnered with non-banking finance organizations.As a result, we had a 35:65 ratio between corporate loans and RAM (retail, agri, and MSME). We do not want to diminish our reputational value in terms of borrowers.We're going to be very selective.Your credit development has been hampered by industries... Will you accelerate now?The latest forecast puts us at 12%, which is a decent rate. When will you be able to pay dividendsWhen has anyone else considered that?We reported a net income of Rs 1,045 crore for FY22, and we are hoping for a modest number in terms of income in March 2023.I think we will revisit the dividend payout once it arrives.We'll be calling this out in April-May next year.Will you be looking for funding? We have Rs 45,000 crore in our investment database, which we provide with sufficient lendable funds.Will you look at dilution?We have sought an exemption from Sebi, as in other public sector banks.We are debating how to raise our float in the market. How does this affect your company?About 32 percent of our loans are tied to external benchmarks, and the transmission will be as follows: 32 percent of my external benchmark-linked loans are about 32 percent, and the reset will take place according to the sanctioned terms.There will be a small lag in loans linked to the marginal cost of lending rate because the interest rate is related to the incremental cost of deposits.What are your ambitions on the digital front?We want to establish a bank within the bank for digital-savvy customers.On the asset and liability sides, there will be no paper. We will also have no physical cards.It would also include third-party and non-financial services.For this project, we have recruited about 80 people, and they will be supplemented wherever funds are required.