The bank, following its March 2020 bailout, may have gone overboard in its quest for safety. That may soon change as it looks to acquire a microfinance business with the promise of high returns.
Furquan MoharkanSubscribe to read this story
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Once considered a panacea for the bank’s troubles, the retail banking segment seems to have become a threat to the private lender’s profitability.
The increasing convergence of sales and service functions, with consequent non-stop pressure to meet targets, has seen employees jump ship in droves. This has the potential to adversely impact the financial institutions’ health.
The microfinance institution faces a possible recall of nearly Rs 6,000 crore in loans given by banks, which it will be hard-pressed to repay given the state of its assets.