Kamakodi rejected the notion that the bank’s loan portfolio is overly concentrated. Nearly 70% of its loan mix comprises MSME (Micro, Small and Medium Enterprises), agricultural MSME, and joint liability non-agricultural loans.
“Within that, the exposures are granular and don’t call it a concentration…even if you look into the MSME metrics, within that, it comes from the different types of industry,” he said.
However, he acknowledged the geographical concentration, calling the bank a “traditional Tamil Nadu-based bank” that is now reaching a saturation point in its home state. To diversify geographically, the bank has opened 60% of its new branches outside Tamil Nadu over the past five years.
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