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Federal Bank Expands In Tamil Nadu With 26 New MSME Branches

Updated: Mar 28, 2024 03:15:15pm

Federal Bank Expands In Tamil Nadu With 26 New MSME Branches

Tamil Nadu, Mar 28 (KNN) Federal Bank Ltd. continues its expansion drive across India, opening 29 new branches on Wednesday, with 26 located in the southern state of Tamil Nadu.

This strategic move aims to increase the bank's business potential and strengthen its presence in key regions.

According to Federal Bank's CEO, Shyam Srinivasan, the bank ended the previous year with 200 branches in Tamil Nadu, and this latest addition brings the total to 250 branches in the state. "This is the first time we are opening so many branches in a single state," he stated to hindu.

The newly opened branches will focus on providing gold and agricultural loans, small and medium enterprise (SME) loans, and attracting deposits.

Retail, agriculture, and micro, small, and medium enterprises (MSME) account for 56 per cent of the bank's credit portfolio, while Tamil Nadu contributes 10 per cent of the bank's total business.

Srinivasan emphasised that Federal Bank is not only strengthening its foothold in the southern states of Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana but also expanding its presence in the northern and eastern regions of India.

"While the west and north have potential for corporate lending, the south is known for commercial banking and SME loans," he explained.

Originally aiming to open 100 new branches in the financial year 2023-24, the private lender has surpassed its target, opening 140 new branches, bringing its total branch network to 1,500 across the country.

With 601 branches in its home state of Kerala, 250 in Tamil Nadu, and about 200 in the rest of southern India, Federal Bank is steadily increasing its reach and accessibility for customers.

When asked about the economic viability of the new branches, Srinivasan revealed that 80-90 branches opened in Tamil Nadu within the last 18 months have already broken even, indicating a positive outlook for the bank's expansion strategy.

(KNN Bureau)


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