Moneycontrol
Last Updated : May 08, 2016 04:28 PM IST | Source: PTI

Lakshmi Vilas Bank draws up plan to revitalise business

Private player Lakshmi Vilas Bank's new chief executive has drawn up an ambitious 10-year plan to revitalise business and has set up big targets to improve performance on a variety of operational parameters.

 
 
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Private player Lakshmi Vilas Bank's new chief executive has drawn up an ambitious 10-year plan to revitalise business and has set up big targets to improve performance on a variety of operational parameters.


Vision documents for 2020 and 2026, labelled LVB 2.0, have been drafted with targets on asset size, market share and shareholder returns, the 90-year-old bank's newly-appointed managing director and chief executive Parthasarathi Mukherjee told PTI.


"From the outside, our bank may look outdated and slow- moving but the possibility for growth is huge. We have an immense opportunity. I would definitely say it is not a losing bet," he said.

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"Across all parameters, I think of 20-25 per cent annual growth for the next 10 years. By 2026, our overall business, including advances and deposits, should be up to nine times higher than the current Rs 45,000 crore. Similarly, our profit should be 15-20 times higher than the usual run rate," he said.


Mukherjee, however, made it clear that the objective is not to drive the change himself, but make the senior team do that so that there is a sense of ownership in the project.


As part of the project which resembles State Bank of India's 'Parivartan' theme in the 2000s, LVB has started with redesignations to clear "lot of mindset issues" of the past.


So, a chief general manager, who heads a business vertical becomes a president and the general manager under him is senior vice-president now, Mukherjee said.


Besides, the bank has hired a new chief customer service officer, Madhukar Rao, who headed new business initiatives at SBI. That apart, the bank has also designated a head for electronic banking.

As part of the strategy, the bank will focus on the higher earning retail and SME loans, which will see the composition of corporate loans going down to 25 per cent from 42 per cent now, he said.

First Published on May 8, 2016 01:56 pm
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