J&K Bank looks at growing retail loan basket at home as slippages remain elevated

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Jammu and Kashmir Bank saw a mixed quarter two. While the net interest margin was aided by yields, loan growth came in below the industry standard and slippages remained elevated.

Speaking to CNBC-TV18, Baldev Prakash, MD & CEO at Jammu & Kashmir Bank said they are eyeing loan growth between 16-18 percent and the focus remains mainly on retail loans in the Jammu and Kashmir and Ladakh region

The bank has a steady customer base from the region as they handle accounts of government employees and police personnel. The bank has provided them the facility of digital loans, or Phone-pe-Loan.

The bank's loan book has around 80 to 85 percent exposure concentrated in the J&K and Ladakh regions. Of this, around 20 percent is concentrated on the administration segment. The bank now wants to grow beyond this.

"Banks loan book out of J&K and Ladakh is growing and the management is confident of that it will grow around 40-50 percent," said Prakash.

When it comes to the rest of the country, the bank is focusing on expanding its corporate loan growth.

“As far as the rest of India is concerned, we are mainly focused on high-rated corporates or public sector units or public sector undertakings. With this mixed strategy, we will be able to bring this around 17-18 percent of overall growth in the loan,” he said