 "Kalyan Kumar, Managing Director and Chief Executive Officer, Central Bank of India")
The Central Bank of India is witnessing strong momentum across retail, micro, small and medium enterprises (MSME), and corporate loan segments, driven by robust demand in the automobile and housing sectors.
The bank is also expanding digital offerings, said Kalyan Kumar, managing director (MD) and chief executive officer (CEO), in a virtual interview with Harsh Kumar. Edited excerpts:
What will be the key priorities for Central Bank?
Our key focus will be on retail, agriculture and MSME segments, as a large part of our presence is in rural and semi-urban areas. As of September 2025, retail, agriculture and MSME together account for about 72 per cent of our loan book. Within this, agriculture stands at around 47 per cent.
These are our core strengths. At the same time, we see good opportunities in corporate lending, particularly with well-rated companies. Our objective is to balance the portfolio over the next two to three years to an optimal mix of around 65 per cent retail, agriculture and MSME, and 35 per cent corporate.
The bank has a strong rural and semi-urban presence, with nearly 65 per cent of branches located in these areas. Geographically, we have a strong presence in Maharashtra, Madhya Pradesh and Uttar Pradesh, which are also key contributors to our current account savings account (CASA) deposits. Overall, the aim is to make the Central Bank a customer-centric, digitally agile bank with sustained growth.
What are your capital-raising plans?
We currently have sufficient capital for growth. To meet minimum public shareholding norms under Securities and Exchange Board of India (Sebi) regulations, the government stake has already been reduced from about 93 per cent to 89 per cent.
We will meet the remaining requirements well before the August 2026 deadline, through options such as qualified institutional placement (QIP), follow-on public offer (FPO) or offer for sale (OFS).
CASA has been a challenge for public sector banks in recent years. What is your strategy to improve it?
We are focusing on personalised service. First, we have made customer onboarding smooth and hassle-free by introducing tablet-based onboarding at all branches.
Second, for a superior banking experience, our mobile applications now offer a marketplace covering most customer requirements.
Third, we are offering segment-specific products, such as salary accounts for different professional groups, police personnel and pensioners — segments that bring stable CASA. Delivery is supported by our technology platforms as well as dedicated sales and marketing teams.
We have also identified institutional segments such as trusts, associations, societies, religious institutions, hotels and hospitals. Branch teams are engaging these segments in a structured manner to mobilise salary and other accounts.
Has the bank seen any impact from the recent United States (US) tariff-related developments?
We have nearly 44 export-oriented customers, mostly MSMEs, with exposure of around ~1,035 crore that deal with the US market. The impact of US tariff-related developments on our customers has been negligible when compared with our overall loan book.
Could you elaborate on bancassurance, especially your partnership with Generali Insurance, and how you are addressing mis-selling concerns?
We have a strong network of 4,556 branches and a trusted brand. We have partnerships with Generali for both life and non-life insurance. While traction is still building, our business plan is in place and we expect meaningful contribution, going forward.
Generali brings global expertise in products and processes, while the bank offers reach and customer trust.
On mis-selling, we have zero tolerance. Clear standard operating procedures (SOPs) are in place, including mandatory confirmation through video calls and other verification mechanisms.
Two of our executive directors are on the boards of the insurance ventures, and the management closely monitors compliance.
