Canara Bank is set to roll out a new loan product against mutual funds starting April 1. The state-owned lender’s CEO, K. Satyanarayana Raju, announced the launch on January 27. The bank aims to introduce this service to its customers at the start of the next financial year.
The loan against mutual funds will be a fully digital product. According to Raju, the bank has developed a comprehensive end-to-end digital infrastructure for this service. This approach will enhance monitoring and improve efficiency. Moreover the system is expected to be ready by the first week of April, enabling a seamless experience for customers.
In the third quarter of FY 2024-25, Canara Bank reported a significant increase in profits. The bank’s standalone net profit rose by 12.25%, reaching Rs 4,104.20 crore. This is up from Rs 3,656.12 crore in the same period last year. Additionally, the bank’s total income grew by 11.7%, reaching Rs 36,113.77 crore compared to Rs 32,333.93 crore in Q3 of the previous year.
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The launch of the loan against mutual funds aligns with Canara Bank’s strategy to offer innovative financial solutions. The bank’s strong quarterly performance further reinforces its ability to expand its product offerings while maintaining healthy financial growth.
With this new digital loan product, Canara Bank aims to tap into a growing segment of investors looking for liquidity without having to sell their mutual fund units. Furthermore this move is expected to benefit both retail investors and the bank’s business model.
As the financial year progresses, Canara Bank’s digital initiatives and robust product offerings could position it as a leading player in the banking sector. The loan against mutual funds is just one of many steps the bank is taking to adapt to the evolving needs of its customers.
In summary, Canara Bank’s new product will offer customers a convenient way to access loans using mutual fund investments as collateral. Moreover with digital infrastructure in place, the bank is set to deliver a more efficient and accessible service.
