As part of its strategy to build new growth engines, Karur Vysya Bank (KVB) has invested ₹29.68 crore in Sahayya Finserve Pvt Ltd, an RBI-registered non-banking financial company (NBFC) engaged in affordable housing finance and loan-against-property financing. The investment gives the bank a 16.4% equity stake in the NBFC and is expected to strengthen KVB’s presence in the retail lending segment.
Addressing shareholders at the bank’s Annual General Meeting (AGM), Karur Vysya Bank Managing Director & CEO B Ramesh Babu outlined a series of initiatives aimed at enhancing customer experience, strengthening risk management, broadening product offerings and creating future-ready growth platforms.
KVB is sharpening its growth strategy for FY27 with a strong focus on artificial intelligence, retail lending, specialised sectoral credit products and digital offerings, while expanding its presence in affordable housing finance through a strategic investment.
A key pillar of the strategy is the deployment of Artificial Intelligence (AI) across critical banking functions. The bank plans to leverage AI for customer grievance handling, transaction monitoring, fraud risk prevention and credit processing to improve operational efficiency and customer service.
Sector-focused lending push
On the business growth front, the bank plans to introduce sector-focused lending products for the food processing and pharma & healthcare industries under its commercial banking segment.
KVB will also relaunch its credit card business with a premium portfolio while introducing a fully digital Loan Against Mutual Fund product as part of its efforts to expand digital lending solutions.
Focus on NRI deposits and MSMEs
Meanwhile, the bank is also stepping up its focus on mobilising NRI deposits and expanding lending to small businesses, even as it prepares for pressure on lending yields amid intense competition for high-quality borrowers.
Speaking during the bank’s recent post-earnings conference call, Ramesh Babu said KVB has started witnessing encouraging traction in customised lending products and remains confident of delivering prudent business growth despite a challenging interest rate environment.
According to the bank, tailor-made lending solutions, including its GST Surrogate Loan designed for customers with limited financial information and the recently launched Open Term Loan product, have received a positive response from customers.
Digital transformation at the core
The latest initiatives underscore KVB’s strategy of combining technology-led transformation with targeted product innovation to deepen customer engagement and diversify its lending portfolio. The investment in affordable housing finance, coupled with AI-driven operational improvements and sector-specific lending, is expected to provide new avenues for sustainable growth while strengthening the bank’s competitive position in an increasingly dynamic banking landscape.