New Delhi, July 24 (KNN) State owned Indian Bank has said it will focus on RAM – Retail, Agriculture and MSME – as they are easy to handle and Non-Performing Assets in these sectors are also less.

 Kishor Piraji Kharat, Managing Director and CEO of the bank, said the bank has set a target of around Rs 3.6 lakh crore in business for the current financial year.

Indian Bank, he said, has already crossed Rs 3.25 lakh crore and, by September, it will cross Rs 3.40 lakh crore. The target of Rs 3.6 lakh crore is easily achievable.

The bank has also set a target of three per cent net interest margin, which will be aided by retail, agriculture, MSME and corporate clients.

"Our focus will be in RAM (retail, agriculture, and MSME), which are easy to handle and NPAs are also less; plus they are good business also," said Kharat.

During the first quarter of 2016-17, Indian Bank's loan book had corporate exposure to the tune of 51 per cent, which was brought down to 49 per cent during the first quarter of 2017-18. On the other hand, retail exposure grew to 51 per cent from 49 per cent.

Speaking about NPAs, Kharat said that they are very much under control. The banks' gross NPAs dropped to 7.21 per cent from 7.47 per cent on a quarter-on-quarter basis. By the end of the year, the bank wants to bring gross NPAs down to five per cent.

The lender is also planning to sell assets worth Rs 540 crore to asset reconstruction companies.

Kharat said that by the end of the current calendar year, the bank is planning to raise capital to support growth.