ING Vysya Bank is looking to grow beyond south India. It raised Rs 415 crore in September 2009 through qualified institutional placement. Uday Sareen, country head (retail banking) of ING Vysya discussed the bank’s roadmap for aggressive growth with HT. Excerpts:
On focus areas
The home loan segment and small and medium enterprises would be our focus areas. We are also evaluating the auto loan segment. However, we are not looking at unsecured lending and we have no plans to get into the plastic money segment.
On whether home loan rates would rise on April 1
I don’t think so. Base rate would be calculated on various parameters, one of which is the cost of funds. These parameters are considered even today while fixing the rates. So implementation of base rate would not increase the cost. It would enhance and increase transparency. We have no immediate plans to tinker with our home loan rates which range between 8.5 per cent and 9 per cent. However, these rates are constantly under review and depend on factors like market condition, RBI guidelines.
On south India operations
We want a pan-India presence. At present, we have 480 branches, of which 350 are in the south. But this year, we have already got the licence to open 60 new branches and 55 of them would be outside the south. We have seen good growth in Punjab and Gujarat.
We have 6,000 employees and have plans to recruit 500 more in eight to 10 months.
On capital infusion plans
There is no requirement in the next 12 to 18 months. Our capital adequacy ratio was 13.72 per cent in December and we are comfortable.