In its business update for the quarter ended September, CSB reported a strong growth in its gold loan portfolio.
CVR Rajendran, MD & CEO of CSB Bank told CNBC-TV18 that the Reserve Bank of India (RBI) policy to relax the loan to asset value aided the loan growth. Also, because of lower rate of interest and high per gram rate of gold, CSB is able to target the customers who are going to the private money lenders and gold loan companies.”
He said, “One thing is the Reserve Bank of India policy of relaxing the loan to asset value, they have permitted 90 percent can be given as the loan against the value. It has helped us in growing the portfolio to a large extent.”