Attended KTK Bank conference call for the first time. These are the following points that have come out of that.
- Company if trying to change the bank from Multi-focused segment to retail focused bank just like many.
- The bank is investing heavily in Technology, this is proved by the fact that this year they have budgeted a 80% rise in technology spends on 23-24.
- They are focusing on processes and capacity enhancement, backed up by technology and branch reach in Karnataka and other states.
- Setting up retail credit Hubs for better underwriting and digital underwriting now constitute about 80% of all underwriting, the hubs will further be increased to 8-9 and focus on reducing TAT.
- Setting up Analytics Center of Excellence along with E&Y to leverage on database of around 13 million customers they have and get more engagement with the bank using Artificial Intelligence (AI)
- The bank is focused on maintaining current ROEs of around 15% and ROAs of around 1.2% or even slightly higher along with keeping Provisioning Coverage Ratio at 81% to 85%.
- Co-Lending opportunities in gold and Agri loans.
- Management claims to gain Advances market share next year. Market is expected to show 12-14% growth so they aspire to beat it.
- Capital raising not required for normal business growth but may raise capital as and when required.
My take is – The key points to watch would be how the execution is for the said targets and how best they can make their products to the changing customer needs with new age banks pushing fresh and innovative, technologically superior banking experience.
Disclosure – Hold the share and may sell or add anytime.
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