First question answered by management speaks a lot . SIB is majorly concentrated in Kerala and in last couple of years state is witnessing heavy rains and floods and retail and sme hit by it. So in order to grow business they are looking into corporate loans and thats the same mistake they done in past. In terms of banking kerala is already a mature market and u can see number of psu and private banks, co-operative banks( they are getting big pie of deposits as their interest rates are higher) along with gold nbfc like muthoot, manapurram and number of small players like ICL, koshamattam and others even in a tier 3 city. Federal Bank , CSB all got the same concentration risk in Kerala and i think federal Bank did better in moving out to other Southern states. I have not studied thoroughly the breakup kerala and non kerala business for SIB. IMO we need to be cautious and watch their corporate loans closely.
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